EXPERT SPEAK. Mr. Nilesh Shah. August 31, 2016

Transcription

1 August 31, 2016

2 EXPERT SPEAK Mr. Nilesh Shah August 31, 2016 Dear Friends, India today stands at a 'Triveni' of opportunities. The triveni of Liquidity, Sentiments, Fundamentals all stand in favour of India today (though not necessarily in the same proportion). The liquidity in the system has been gradually modulated from a negative to positive. The banking liquidity in the system was transformed from negative Rs 170,000 crs in Feb-16; to today, where the liquidity is positive Rs 63,000 crs. This liquidity has eased the pressure on rates, reduced the borrowing cost and has provided a demand fillip for asset purchase. The stock market liquidity is driven by both domestic and foreign investors. Between retail and institutional players, demand for equity in FY17 can be between Rs 175, ,000 cr far exceeding the potential supply of Rs 120,000 Rs 150,000 cr between government divestment and issuance. This excess demand is keeping prices elevated. The sentiments are improving on account of a host of positive actions and reforms coming together. The passage of the GST bill, good monsoon, the expected pay-out due to 7th pay commission, and thrust on improving the ease of doing business, all have contributed towards improving the investment climate and the prospects of business in the country. This has boosted investor sentiment domestically and abroad. This in turn has seen a significant rise in the FDI and FII inflows which has risen to US 17.3 bn and US 6.2 bn respectively this year. Most vitally, the fundamentals of the economy are on a very strong footing. The current account deficit has been tamed and stands at -1.06% of the GDP. The fiscal deficit in the economy is projected to be at 3.5% of the GDP. The CPI inflation is at 6.05%, which while at the upper end of RBI's threshold, is still well below the levels seen 2-3 years ago. Moreover, the low crude oil prices and good monsoon is expected to tame the food inflation over a period of 2-4 months and help mitigate the CPI inflationary pressure. This has led to a gradual reduction in the repo rate of around 150 bps point in this current rate reduction cycle. Moreover, the GDP growth rate is at above 7% and is expected to the 8% mark in the medium term future. These statistics in an increasingly moderating global economy highlight India as an exceptional opportunity not to be missed. For that reason the investor remains advised to seek redemption by taking a dip in this 'Triveni' and obtain financial peace. Having said that, the market performance in the short term is like being in a boxing match. You may get hammered left and right initially. But over the long term most heavy weight boxers will make money. For an equity investor it is important to keep that in the perspective. In the short term the market volatility may hurt the investor but a long term view will yield positive results. From that angle the investors remain advised to invest in the market with a long term investment objective; and to mitigate the volatility by building up their capital by investing through SIP. Investors with a low-moderate risk appetite can utilise various asset allocation strategies and still obtain the potential gains of equity while also reduce the risk exposure on their capital. In this regard, mutual funds have a wide gamut of products ranging from balance to multi asset allocation to cater to these needs. Investors are advised to seek information from their financial advisors in this regard. Regards, Nilesh Shah Managing Director 1

3 EQUITY VIEW The month of August 2016 started with caution ahead of the passage of the GST (Good and Services Tax) Amendment Bill. However, sentiment improved with the smooth passage of the bill in the Rajya Sabha (Upper House of Parliament) and a somewhat better than expected Q1FY17 earnings season. India continued to benefit from improvement in global liquidity flows into emerging markets with net FII inflows into equity markets at USD1.4Bn for the month of August CYTD 2016, FII have been net buyers in Indian equities to the tune of USD6.14 Bn. Corporate bond and government security (G-Sec) yields have been on their way down with the 10year benchmark yield now at 7.1% (7.8% a year ago). The expectations are that the yield on the new 10 year benchmark security will be lower than 7%. Fall in the cost of borrowings implies that corporates which have leveraged balance sheets would see improvement in profitability. As growth improves, we believe that this together with better operating leverage would be key drivers of earnings. Over time, a sustained fall in rates would translate into lower cost of capital which would in turn be supportive of market and stock valuations. Indian corporate earning cycle is also an inflexion point and is likely to recover form a sharp down cycle. Currently the Nifty is trading at 19xFY17E EPS and 16xFY18E EPS (on a free float basis). Fed rate hike- an eventuality: Unlikely to derail the Indian markets; One of the key questions in the minds of most investors is when would the US Federal Reserve hike rates again and the implications of the same on fund flows into emerging markets including India. Post the Jackson Hole Symposium wherein Janet Yellen indicated that case for rate hikes has strengthened but would be gradual and over time, global markets have marginally recalibrated their expectations of a US Fed rate increase in the month of September 2016 and the market also ascribes a much higher probability to a hike in December 2016 (still below 50% probability though). This is on the back of (1) recent economic data and (2) comments of various US Fed Governors. We note that the US economy is gradually strengthening especially with regard to data on employment even though inflation remains below target levels. While it is difficult to take a call on the timing of the next Fed rate hike (we believe that it will likely be in the December policy), we do believe that Indian markets would prove to be fairly resilient to the same. While the near future following the next Fed hike could see some degree of volatility, we do not see a structurally negative situation of the Indian markets. The Nifty earnings trajectory has likely bottomed out (and started improving as seen in Q1FY17) and it is likely that the increase in growth momentum in the initial stages would offset any negative impact of rate hikes. Further, the accommodative policies of the global central banks would likely continue with sustained bond purchase programmes. Impact on currency: INR performance in previous episodes of US Fed rate hikes has been mixed and is more an outcome of India's own current account deficit (CAD) and Balance of Payments (BoP) position. We are pencilling in a mild depreciation of the INR/USD in FY17 and expect that the currency would average 68/USD. RBI Monetary Policy: Status quo maintained; Room to cut rates by 25-50bps remains Governor Rajan announced his last monetary policy on August 09, RBI kept monetary policy rates unchanged as per our expectations. The Repo Rate therefore remains at 6.5%, the Reverse Repo rate at 6.0% and the CRR (Cash Reserve Ratio) at 4%. While the CPI (Consumer Price Inflation) inflation reading in September 2016 will remain elevated, going forward, we do expect to see some moderation in inflation as the prices of food articles (specifically pulses) comes off over time on the back of good monsoons and supply side management measures. It is therefore likely that inflation would meet RBI's targeted level of 5% by March The key focus of RBI remains on providing adequate liquidity to the system and moving systemic liquidity to a structurally neutral level. The overall stance of the policy remains accommodative. With liquidity having moved from a situation of deficit to a neutral level, RBI is certainly shifting the onus on to banks to cut lending rates. Also the new norms announced by the central bank aims at reducing bank level risk of high exposure to a single corporate while at the same time trying to deepen the corporate bond market. We do believe that as inflation path moves closer to RBI's glide path, there would be some room to cut policy rates for RBI. We are still pencilling in 25-50bps of policy rate cuts incrementally for FY17. The next policy announcement will see the new Governor (Dr Urjit Patel) and the Monetary Policy Committee (to be constituted) making the decision. We have to wait and watch how the new members view the inflation dynamics and weigh out the balance of risks. Urjit Patel appointed as new RBI Governor; Expect inflation targeting to remain the key policy objective for RBI Appointment of Urjit Patel (Currently Deputy RBI Governor in charge of monetary policy) as the next RBI Governor puts to rest months of worry over the continuity of RBI's policy objectives. His appointment signals that the Government intends to continue inflation targeting as the key policy objective of the RBI. This coupled with the recent reiteration by the Government that RBI's medium term CPI inflation target remains at 4% with a +/-2% band implies that RBI will be focussed on ensuring the transmission of the policy rate cuts so far into the system via lower lending rates and ensuring adequate liquidity to bring down cost of borrowing. Real GDP growth: Q1FY17 data muted; consumption to remain key driver of growth in FY17 India's real GDP growth slowed in Q1FY17 to 7.1% from 7.9% in the previous quarter. While GDP growth decelerated more than expected, GVA (Gross Value Added) growth on the other hand moderated marginally, in line with expectations to 7.3%. The difference between GDP and GVA is net indirect taxes (indirect taxes minus subsidies). We expect real GDP growth at 7.7% (on a GVA basis) in FY17E. As reiterated in earlier notes, this growth would be predominantly consumption led boosted by normal monsoons and higher agricultural growth together with the salary hikes post the 7th Pay Commission recommendations.. However, constraints in the form of low capacity utilization and private sector debt overhang will likely keep the structural recovery path somewhat back ended in nature. Measures announced by the RBI to promote the bond market: Focus on diversifying banking sector exposures RBI has been focussing on developing the Indian bond market given that the banking system has been slow in transmitting policy rate cuts. To facilitate the transition to bond markets, the RBI announced a series of measures. From FY19, accessing bank credit beyond certain thresholds will become costlier for large corporates (requiring higher capital and standard asset provisioning). The RBI has also addressed various market impediments to promote participation in the secondary bond market. We expect this trend of promoting bond markets to continue. This could put pressure on lenders to move away from higher ticket corporate loans to a more diversified asset base. The focus is on de-risking the balance sheet of large banks which have seen stress due to high exposures to overleveraged corporates. Some of the steps taken include: Banks will have to make 300bps additional provision and use 75% additional risk weights on "high risk" exposures. RBI has specified that the new norms will apply on any corporate (called "Specified Borrower") with credit sanctions more than INR250Bn (USD 3.7Bn), any time during FY18 (reducing progressively over FY19 and FY20). After crossing the credit limit in any given year, 50% of the incremental borrowing in next fiscal year (over and above the limit), by the 'Specified Borrower" will be "high risk". RBI has also proposed to amend the RBI Act, in order to allow corporate bonds as eligible collateral for Liquidity Adjustment Facility (LAF), with appropriate haircuts. Key Variables Short - term Economy Corporate Earnings FII Flow Medium - term Remarks Improving growth, falling inflation Improving operating leverage, falling interest costs and improvement in working capital can accelerate earnings, but a bit back-ended (FY17) India stands out among global asset classes with improving macro-economic variables and prospects of strong long term growth DII Flow Supply of paper Focus on improving financial savings of households er disinvestment target and repair of leveraged balance sheet to create supply in markets Interest Rates Policy/Reform Initiative Fall in interest rates to help revive demand and reduce stress for companies with significant debt. Market expecting better transmission of rates. GST is key reform for government to focus on; if it gets passed, can provide a significant fillip 2

4 DEBT VIEW Items Aug-16 Jun-16 Change Reverse Repo 6.00% 6.00% Nil Repo 6.50% 6.50% Nil CRR 4% 4% Nil SLR 21.25% 21.25% Nil Mibor Overnight 6.54% 6.59% -5 bps Call(O/N) 6.39% 6.35% 4 bps CBLO 6.35% 6.28% 7 bps 1 yr T Bill 6.67% 6.73% - 6 bps 10 G Sec 7.11% 7.17% - 6 bps 5 Year AAA 7.52% 7.64% - 12 bps USD/INR paise Source: RBI; Bloomberg. Key Events: CPI inflation firmed up to a 23-month high 6.1% in July 2016 from 5.8% in June Crude oil prices rose to 48.02/barrel (~11% MoM) during the month, on speculation that the OPEC countries and other oil producers might agree to curb output at September talks in Algeria. The RBI decided to keep repo rate at 6.50 %, on inflationary pressures but said the central bank's stance remains 'accommodative'. RBI also retained the GDP growth projection at 7.6 % Dr Urjit Patel has been appointed as the Governor of Reserve Bank replacing Dr Raghuram Rajan Industrial output grew by 2.1 % in June, although down from 4.2 % a year ago, on account of poor show by manufacturing and heavy contraction in capital goods production. Jannet Yellen gave a speech in a conference and said an increase in the Fed's policy rate has strengthened in recent months due to improvements in the labour market and to expectations for solid economic growth The trade deficit for the month came in at 7.76 billion. India's merchandise exports contracted 6.84 percent YOY to billion in July. Imports in July dropped percent YOY to billion, the data showed. Debt Outlook Long Term Curve: The month of August witnessed more flattening as the 10 year benchmark gilt came off by 2 bps; the 15 year and 30 year curve came down by 10 bps We expect the new Governor Dr Urjit Patel will maintain continuity in the policy thought process /stance. Post initial knee jerk reaction, the markets have given a thumbs-up for the same The CPI inflation is expected to fall sharply therefore rally will be longer than expected by the market CPI inflation numbers are likely to collapse to 5% and below in coming months due to fall in food and vegetable prices The measures taken by RBI for development of the bond market will take some time to impact but the measures are very positive and will have a meaningful impact on yields particularly bonds spreads We expect the New 10 year cutoff to be approx. 6.95% which will be a reason to cheer Post new 10 year all the spread assets viz AAA/AA+ corporate bonds and SDL will appear attractive and will witness rally/compression vis-a-vis new 10 year therefore we are positive on various spread assets If liquidity become tight post FCNR deposit maturity, we expect RBI to resume OMO, which would be positive for gilts Short-Term Curve (3m -24 m): Short term rates up to 3 months are trading in the range of bps above CBLO rates Rates in the 6m-24m segments remained unchanged during the last month and we expect them to continue trading in similar range Key variables & their impact on interest rates: Key Variables Inflation Rupee Credit Demand Government Borrowing Short - term (3-6 month) Medium term (6month 2 years) RBI Policy Global Event Risk Corporate bond Spread Debt FII flow Liquidity Denotes fall in interest rates 3 3

5 GOLD VIEW IN the month of August, the brent crude was a up by ~20% while gold lost its sheen and was down by almost 2%. In the similar period the INR was broadly flat MoM. As we had highlighted in the previous note, gold has always been perceived to be a safe haven currency in the time of geo political risk or excessive easing in MPR(Monitory Policy Review) particularly by FED. Gold prices as predicted has been range bound due to uncertainty from the fed. However Janet Yellen in the Jackson hole speech gave slight indication of rate hike somewhere down the line but still was non-committal in terms of timing which kept the commodity markets and the rates markets on the edge. We have US non-farm payroll data before the next FOMC which might give some clue in terms of what is likely to be the decision. A weak data equal or lower than 1.5 lac jobs will support a no hike or push it to December. On the other hand, a significantly higher number than that will increase the probability of a hike. However the market expectation is that 1.8 lac jobs would have been added. Indian govt is pushing the pedal on reforms and the mile stone of GST has been conquered. 16 states have already ratified the law as of now. Inflation is likely to come down sharply. Coupled with good monsoon, it will support INR in medium to long term. Therefore a large part of the gold return which used to come from currency depreciation will be capped and may also probably act otherwise. We may see a current account surplus situation for Q2 which will be positive for INR. The currency wars will keep gold supportive in dollar terms but the impending Fed rate hike will keep it range bound. India story is unfolding and it has a long way to go. Therefore equities can be a better play followed by bonds then gold bonds and then gold for the domestic investors. 4

6 EQUITY SCHEMES KOTAK 50 An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a portfolio of predominantly equity and equity related securities. The portfolio will generally comprise of equity and equity related instruments of around 50 companies which may go up to 59 companies but will not exceed 59 at any point in time. However, there is no assurance that the objective of the scheme will be realized. December 29,1998 Mr. Harish Krishnan* Nifty 50 AAUM (` In Crores) AAUM as on August 31, 2016: `1, AUM (` In Crores) AUM as on August 31, 2016: `1, A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 66.49% Beta: 1.02 ## Sharpe :1.07 Standard Deviation : 15.53% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.54% (FBIL Overnight MIBOR rate as on 31st August 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: i) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1%. ii) For redemption/switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil. Note Any exit load charged (net off Service Tax, if any) shall be credited back to the respective scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Total Expense Ratio ** Regular:2.20% Direct: 1.00% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 8.75 Infosys Ltd. Software 5.77 Reliance Industries Ltd. Petroleum Products 4.37 ICICI Bank Ltd. Banks 4.21 ITC Ltd. Consumer Non Durables 4.20 IndusInd Bank Ltd. Banks 4.11 Axis Bank Ltd Banks 4.09 Maruti Suzuki India Limited Auto 3.51 Larsen And Toubro Ltd. Construction Project 3.33 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 3.04 Hero MotoCorp Ltd. Auto 3.03 Tata Motors Ltd - DVR Auto 2.53 Ultratech Cement Ltd. Cement 2.47 Britannia Industries Ltd. Consumer Non Durables 2.22 Mahindra & Mahindra Ltd. Auto 2.20 Bharat Petroleum Corporation Ltd. Petroleum Products 1.97 HCL Technologies Ltd. Software 1.89 Tata Consultancy Services Ltd. Software 1.84 Shree Cement Ltd. Cement 1.58 HDFC Ltd. Finance 1.49 Asian Paints Ltd. Consumer Non Durables 1.37 The Ramco Cements Ltd Cement 1.36 Lupin Ltd. Pharmaceuticals 1.35 State Bank Of India Banks 1.32 Kajaria Ceramics Ltd. Construction 1.27 DB Corp Limited Media and Entertainment 1.23 Indraprastha Gas Ltd. Gas 1.22 Bayer Cropscience Ltd. Pesticides 1.15 Cadila Healthcare Ltd. Pharmaceuticals 1.10 MRF Limited Auto Ancillaries 1.07 Nestle India Ltd. Consumer Non Durables 1.07 Power Grid Corporation Of India Ltd Power 1.03 Equitas Holdings Ltd Finance 1.02 Grasim Industries Ltd. Cement 0.99 Sanofi India Ltd. Pharmaceuticals 0.99 National Thermal Power Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Jun 30, 2016 (Rs) Returns (%) Nifty 50 (Rs)# Nifty 50 Returns (%) S&P BSE SENSEX (Rs)^ S&P BSE SENSEX Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Corporation Limited Power 0.97 Jubilant Foodworks Limited Consumer Non Durables 0.96 Bharat Electronics Ltd Industrial Capital Goods 0.95 Strides Shasun Ltd. Pharmaceuticals 0.94 Tech Mahindra Ltd. Software 0.94 Bank Of Baroda Banks 0.93 Siemens Ltd. Industrial Capital Goods 0.93 Persistent Systems Limited Software 0.91 Colgate Palmolive (India ) Ltd. Consumer Non Durables 0.89 Supreme Industries Limited Industrial Products 0.89 Alstom India Limited Industrial Capital Goods 0.87 Fag Bearings India Ltd. Industrial Products 0.84 LIC Housing Finance Ltd. Finance 0.72 Shriram Transport Finance Co Ltd. Finance 0.59 Bharat Forge Ltd. Industrial Products 0.53 HDFC Ltd. Warrants Finance 0.43 DR.Lal Pathlabs Ltd Healthcare Services 0.38 Solar Industries India Limited Chemicals 0.32 Apollo Hospitals Enterprises Ltd. Healthcare Services 0.28 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.41 Collateral Borrowing & Lending obligation 1.36 Net Current /(Liabilities) Inception : - December 29, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak 50 NAV as on August 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Systematic Investment Plan (SIP) If you had invested `10,000 every month Banks Software Auto Consumer Non Durables Cement Pharmaceuticals Construction Project Petroleum Products Finance Industrial Capital Goods Others 1 year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 2,110, , , ,695 1,265,509 2,141,327 12,248, , , ,087 1,152,292 1,912,086 7,456, , , ,999 1,128,427 1,864,043 7,499, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 5 * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no 44-53

7 EQUITY SCHEMES KOTAK CLASSIC EQUITY An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. July 27, 2005 Mr. Harish Krishnan* Nifty 100 AAUM (` In Crores) AAUM as on August 31, 2016: ` AUM (` In Crores) AUM as on August 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: % Beta: 0.89 ## Sharpe :0.95 Standard Deviation : 13.79% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.54% (FBIL Overnight MIBOR rate as on 31st August 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: Nil., (w.e.f December 01, 2014) Regular: 2.64% Direct: 1.16% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 7.86 ITC Ltd. Consumer Non Durables 5.21 Bharat Petroleum Corporation Ltd. Petroleum Products 5.04 Infosys Ltd. Software 4.90 Grasim Industries Ltd. Cement 4.89 Hero MotoCorp Ltd. Auto 4.81 Asian Paints Ltd. Consumer Non Durables 4.72 Power Grid Corporation Of India Ltd Power 3.47 National Thermal Power Corporation Limited Power 2.98 Reliance Industries Ltd. Petroleum Products 2.51 Tata Steel Limited. Ferrous Metals 2.47 Hindustan Unilever Ltd. Consumer Non Durables 2.34 ACC Ltd. Cement 2.07 Tata Motors Ltd. Auto 2.04 Bajaj Finance Limited Finance 2 Petronet LNG Ltd. Gas 1.87 IndusInd Bank Ltd. Banks 1.73 Zee Entertainment Enterprises Ltd Media and Entertainment 1.58 Ambuja Cements Ltd Cement 1.50 Biocon Ltd. Pharmaceuticals 1.47 RBL Bank Ltd Banks 1.46 Mahindra & Mahindra Ltd. Auto 1.42 The Ramco Cements Ltd Cement 1.37 Hindalco Industries Ltd Non - Ferrous Metals 1.35 Ultratech Cement Ltd. Cement 1.34 Eicher Motors Ltd Auto 1.31 JSW Steel Ltd. Ferrous Metals 1.16 Bosch Limited Auto Ancillaries 1.13 Larsen And Toubro Ltd. Construction Project 1.09 Axis Bank Ltd Banks 1.08 HDFC Ltd. Warrants Finance 1.01 GAIL (India) Ltd. Gas 0.97 Dr Reddys Laboratories Ltd Pharmaceuticals 0.93 ICICI Bank Ltd. Banks 0.93 Yes Bank Ltd Banks 0.92 Wipro Ltd. Software 0.90 Pidilite Industries Ltd. Chemicals 0.61 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Jun 30, 2016 (Rs) Returns (%) Nifty 100 (Rs)# Nifty 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Shriram Transport Finance Co Ltd. Finance 0.50 The Indian Hotels Company Ltd. Hotels 0.50 Lupin Ltd. Pharmaceuticals 0.46 HCL Technologies Ltd. Software 0.42 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.41 HDFC Ltd. Finance 0.38 Bharti Airtel Ltd. Telecom - Services 0.37 Tech Mahindra Ltd. Software 0.29 Britannia Industries Ltd. Consumer Non Durables 0.28 Vedanta Ltd. Minerals/Mining 0.28 Tata Consultancy Services Ltd. Software 0.10 Mahindra & Mahindra Financial Services Ltd. Finance 0.09 Bajaj Auto Ltd. Auto 0.03 Maruti Suzuki India Limited Auto 0.01 Listed/Awaiting Listing on Stock Exchange - Total Futures IndusInd Bank Ltd.-SEP ICICI Bank Ltd.-SEP Bajaj Auto Ltd.-SEP Maruti Suzuki India Limited-SEP Yes Bank Ltd-SEP Futures (Market value represents Notional Value) - Total 7.42 TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 5.47 Collateral Borrowing & Lending obligation 1.39 Net Current /(Liabilities) Systematic Investment Plan (SIP) If you had invested `10,000 every month 1 year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,320, , , ,495 1,257,738 2,162,687 2,528, , , ,658 1,184,471 1,988,276 2,360, , , ,087 1,152,292 1,912,086 2,272, Inception : - July 27,2005. The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Classic Equity NAV as on August 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Auto Finance Cement Consumer Non Durables Pharmaceuticals Derivatives Petroleum Products Others CBLO&Term Deposits&Rev.Repo * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 6

8 EQUITY SCHEMES KOTAK OPPORTUNITIES An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. September 9, 2004 Mr. Harsha Upadhyaya* Nifty 500 AAUM (` In Crores) AAUM as on August 31, 2016: ` AUM (` In Crores) AUM as on August 31, 2016: ` A) Regular Plan: B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 22.79% Beta: 0.99 ## Sharpe :1.21 Standard Deviation :15.49% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.54% (FBIL Overnight MIBOR rate as on 31st August 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular:2.32% Direct: 1.15% 7 Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 5.17 Infosys Ltd. Software 4.50 Shree Cement Ltd. Cement 3.68 ITC Ltd. Consumer Non Durables 3.61 Hero MotoCorp Ltd. Auto 3.42 Hindustan Petroleum Corporation Ltd Petroleum Products 3.16 Axis Bank Ltd Banks 3.06 Bharat Petroleum Corporation Ltd. Petroleum Products 2.76 Larsen And Toubro Ltd. Construction Project 2.74 Maruti Suzuki India Limited Auto 2.74 Ultratech Cement Ltd. Cement 2.67 ICICI Bank Ltd. Banks 2.64 Dalmia Bharat Ltd Cement 2.51 State Bank Of India Banks 2.44 IndusInd Bank Ltd. Banks 2.36 UPL Ltd Pesticides 2.31 Reliance Industries Ltd. Petroleum Products 2.24 Britannia Industries Ltd. Consumer Non Durables 2.20 Torrent Pharmaceuticals Ltd. Pharmaceuticals 2.07 Tata Motors Ltd. Auto 2.05 Indraprastha Gas Ltd. Gas 2.03 Bajaj Finance Limited Finance 1.99 Petronet LNG Ltd. Gas 1.80 Max Financial Services Ltd. Finance 1.78 The Ramco Cements Ltd Cement 1.74 Mahindra & Mahindra Ltd. Auto 1.73 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.73 Tech Mahindra Ltd. Software 1.54 HCL Technologies Ltd. Software 1.41 Healthcare Global Enterprises Ltd Healthcare Services 1.32 Lupin Ltd. Pharmaceuticals 1.17 AIA Engineering Limited Industrial Capital Goods 1.16 National Buildings Construction Corporation Limited Construction 1.16 Multi Commodity Exchange of India Limited Finance 1.07 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Jun 30, 2016 (Rs) Returns (%) Nifty 500 (Rs)# Nifty 500 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Inception : - September 09, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Opportunities NAV as on August 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Others Petroleum Products Auto Pharmaceuticals Finance Consumer Non Durables Cement Gas Construction Project * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,420, , , ,290 1,391,839 2,420,898 3,641, , , ,288 1,204,466 1,996,825 2,766, , , ,087 1,152,257 1,912,051 2,702, JK Cement Ltd. Cement 1.06 Arvind Ltd Textile Products 1.05 MRF Limited Auto Ancillaries 1.04 Va Tech Wabag Limited Engineering Services 1.03 Whirlpool of India Ltd. Consumer Durables 1.03 Bank Of Baroda Banks 0.98 DR.Lal Pathlabs Ltd Healthcare Services 0.97 Ashok Leyland Ltd. Auto 0.95 Fag Bearings India Ltd. Industrial Products 0.93 Persistent Systems Limited Software 0.90 Cummins India Ltd. Industrial Products 0.89 Container Corporation of India Ltd. Transportation 0.84 Federal Bank Ltd. Banks 0.83 Techno Electric & Engineering Co Ltd. Construction Project 0.79 Equitas Holdings Ltd Finance 0.64 Prestige Estates Projects Limited Construction 0.56 CESC Ltd. Power 0.52 HDFC Ltd. Warrants Finance 0.52 SKF India Ltd Industrial Products 0.51 Swaraj Engines Ltd Industrial Products 0.42 D-Link (India) Ltd Hardware 0.33 MBL Infrastructures Ltd. Construction 0.33 Max India Limited Healthcare Services Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.13 Listed/Awaiting Listing on Stock Exchange - Total Futures Maruti Suzuki India Limited-SEP Futures (Market value represents Notional Value) - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.42 Collateral Borrowing & Lending obligation 2.48 Net Current /(Liabilities) 1.24 Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

9 EQUITY SCHEMES KOTAK SELECT FOCUS FUND An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities, generally focused on a few selected sectors. However, there is no assurance that the objective of the scheme will be realized. September 11, 2009 Mr. Harsha Upadhyaya* Nifty 200 AAUM (` In Crores) AAUM as on August 31, 2016: `5, AUM (` In Crores) AUM as on August 31, 2016: ` 5, A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 29.41% Beta: 1.01 ## Sharpe : 1.35 Standard Deviation : 15.83% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.54% (FBIL Overnight MIBOR rate as on 31st August 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.00% Direct: 1.00% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 5.93 Reliance Industries Ltd. Petroleum Products 4.87 Ultratech Cement Ltd. Cement 4.29 ITC Ltd. Consumer Non Durables 3.98 Hero MotoCorp Ltd. Auto 3.77 Infosys Ltd. Software 3.70 The Ramco Cements Ltd Cement 3.56 Shree Cement Ltd. Cement 3.36 Axis Bank Ltd Banks 3.25 IndusInd Bank Ltd. Banks 2.93 Mahindra & Mahindra Ltd. Auto 2.93 Max Financial Services Ltd. Finance 2.76 Hindustan Petroleum Corporation Ltd Petroleum Products 2.75 Bajaj Finance Limited Finance 2.72 Maruti Suzuki India Limited Auto 2.68 Britannia Industries Ltd. Consumer Non Durables 2.50 Larsen And Toubro Ltd. Construction Project 2.47 Indraprastha Gas Ltd. Gas 2.41 Petronet LNG Ltd. Gas 2.28 Tata Motors Ltd. Auto 1.91 Bharat Electronics Ltd Industrial Capital Goods 1.87 Bharat Petroleum Corporation Ltd. Petroleum Products 1.85 ICICI Bank Ltd. Banks 1.81 State Bank Of India Banks 1.78 HCL Technologies Ltd. Software 1.46 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.39 Equitas Holdings Ltd Finance 1.32 Godrej Consumer Products Ltd. Consumer Non Durables 1.29 Arvind Ltd Textile Products 1.27 Bajaj Finserv Ltd. Finance 1.26 Lupin Ltd. Pharmaceuticals 1.20 MRF Limited Auto Ancillaries 1.13 Ashok Leyland Ltd. Auto 1.12 Jk Lakshmi Cement Ltd. Cement 1.04 Bayer Cropscience Ltd. Pesticides 1.03 Container Corporation of India Ltd. Transportation 1.02 Federal Bank Ltd. Banks 0.94 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) SYSTEMATIC INVESTMENT PLAN (SIP) Cadila Healthcare Ltd. Pharmaceuticals 0.89 Tech Mahindra Ltd. Software 0.81 Techno Electric & Engineering Co Ltd. Construction Project 0.79 AIA Engineering Limited Industrial Capital Goods 0.77 Bank Of Baroda Banks 0.70 Solar Industries India Limited Chemicals 0.70 Max India Limited Healthcare Services 0.59 Kec International Ltd. Power 0.53 Navkar Corporation Limited Transportation 0.44 Whirlpool of India Ltd. Consumer Durables 0.44 CESC Ltd. Power 0.32 HDFC Ltd. Warrants Finance 0.30 Kirloskar Oil Engines Ltd. Industrial Products 0.21 IFB Industries Ltd. Consumer Durables Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.02 Listed/Awaiting Listing on Stock Exchange - Total Futures Maruti Suzuki India Limited-SEP Futures (Market value represents Notional Value) - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.59 Collateral Borrowing & Lending obligation 4.21 Net Current /(Liabilities) 1.01 Systematic Investment Plan (SIP) If you had invested `10,000 every month Total Value as on Jun 30, 2016 (Rs) Returns (%) Nifty 200 (Rs)# Nifty 200 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) Inception : - September 11, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Select Focus Fund NAV as on August 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Petroleum Products Gas Auto Pharmaceuticals Finance Consumer Non Durables Cement CBLO & Term Deposits & Rev.Repo Others year 3 years 5 years Since Inception 120, , , , , , ,598 1,466, , , ,361 1,143, , , ,087 1,114, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities generally focussed on a few selected sectors. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no

10 EQUITY SCHEMES KOTAK TAX SAVER An Open - Ended Equity Linked Savings INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate long-term capital appreciation from a diversified portfolio of equity and equity related securities and enable investors to avail the income tax rebate, as permitted from time to time. However, there is no assurance that the objective of the scheme will be realized. November 23, 2005 Mr. Harsha Upadhyaya* Nifty 500 AAUM (` In Crores) AAUM as on August 31, 2016: ` AUM (` In Crores) AUM as on August 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout & Growth.... Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 21.20% Beta: 1.04 ## Sharpe : 1.23 Standard Deviation : 16.48% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.54% (FBIL Overnight MIBOR rate as on 31st August2016) Initial Investment: `500 and in multiple of `500 Investment: `500 & in multiples of `500 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: Exit Load is not applicable for Kotak Tax Saver. (applicable for all plans) Units issued on reinvestment of dividends shall not be subject to exit load (applicable for all plans) Regular: 2.45% Direct: 1.20% 9 Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 5.62 Infosys Ltd. Software 4.38 Reliance Industries Ltd. Petroleum Products 4.31 ITC Ltd. Consumer Non Durables 4.10 Shree Cement Ltd. Cement 4.05 Axis Bank Ltd Banks 3.46 IndusInd Bank Ltd. Banks 3.26 Ultratech Cement Ltd. Cement 3.17 Hero MotoCorp Ltd. Auto 3.13 Bharat Petroleum Corporation Ltd. Petroleum Products 2.96 ICICI Bank Ltd. Banks 2.92 Hindustan Petroleum Corporation Ltd Petroleum Products 2.87 State Bank Of India Banks 2.64 Whirlpool of India Ltd. Consumer Durables 2.47 Britannia Industries Ltd. Consumer Non Durables 2.31 Mahanagar Gas Ltd Gas 2.23 Tata Motors Ltd. Auto 2.23 Dalmia Bharat Ltd Cement 2.13 Larsen And Toubro Ltd. Construction Project 2.08 SKF India Ltd Industrial Products 1.93 Techno Electric & Engineering Co Ltd. Construction Project 1.92 RBL Bank Ltd Banks 1.80 The Ramco Cements Ltd Cement 1.70 Max Financial Services Ltd. Finance 1.54 SRF Ltd. Textile Products 1.52 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.52 UPL Ltd Pesticides 1.51 Cadila Healthcare Ltd. Pharmaceuticals 1.50 Tech Mahindra Ltd. Software 1.47 Lupin Ltd. Pharmaceuticals 1.46 Solar Industries India Limited Chemicals 1.45 Bajaj Finance Limited Finance 1.41 Federal Bank Ltd. Banks 1.35 Total amount invested (Rs) Total Value as on Jun 30, 2016 (Rs) Returns (%) Nifty 500 (Rs)# Nifty 500 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) AIA Engineering Limited Industrial Capital Goods 1.26 Arvind Ltd Textile Products 1.22 HCL Technologies Ltd. Software 1.22 Ashok Leyland Ltd. Auto 1.20 Multi Commodity Exchange of India Limited Finance 1.17 Mahindra & Mahindra Ltd. Auto 1.13 Bank Of Baroda Banks 1.12 Container Corporation of India Ltd. Transportation 1.10 Blue Dart Express Ltd. Transportation 0.91 Hawkins Cooker Ltd Household Appliances 0.91 Thermax Ltd. Industrial Capital Goods 0.90 Navneet Education Ltd. Media and Entertainment 0.85 Texmaco Rail & Engineering Ltd. Industrial Capital Goods 0.68 Cummins India Ltd. Industrial Products 0.54 KSB Pump Ltd Industrial Products 0.51 LIC Housing Finance Ltd. Finance 0.44 Maruti Suzuki India Limited Auto Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.14 State Bank of Bikaner and Jaipur Banks 0.06 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Blue Dart Express Ltd ICRA AA 0.03 Corporate Debt/Financial Institutions - Total 0.03 Collateral Borrowing & Lending obligation 1.67 Net Current /(Liabilities) 0.14 Inception : - November 23, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Tax Saver NAV as on August 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Pharmaceuticals Consumer Non Durables Petroleum Products Cement Finance Construction Project Industrial Products Others * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,280, , , ,961 1,322,372 2,169,298 2,387, , , ,288 1,204,596 1,996,956 2,212, , , ,087 1,152,292 1,912,086 2,133, Auto Investors understand that their principal will be at moderately high risk long term capital growth with a 3 year lock in Investment in portfolio of predominantly equity & equity related securities. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

11 EQUITY SCHEMES KOTAK MID-CAP An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. February 24, 2005 Mr. Pankaj Tibrewal* Nifty Midcap 100 AAUM (` In Crores) AAUM as on August 31, 2016: ` AUM (` In Crores) AUM as on August 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 44.44% Beta: 0.98 ## Sharpe : 1.71 Standard Deviation : 17.67% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.54% (FBIL Overnight MIBOR rate as on 31st August 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.48% Direct: 1.18% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Atul Ltd. Chemicals 3.20 Finolex Cables Ltd. Industrial Products 3.08 DB Corp Limited Media and Entertainment 2.76 The Ramco Cements Ltd Cement 2.70 Techno Electric & Engineering Co Ltd. Construction Project 2.64 Whirlpool of India Ltd. Consumer Durables 2.51 Solar Industries India Limited Chemicals 2.46 Fag Bearings India Ltd. Industrial Products 2.37 IndusInd Bank Ltd. Banks 2.35 Shriram City Union Finance Ltd. Finance 2.31 Federal Bank Ltd. Banks 2.26 Strides Shasun Ltd. Pharmaceuticals 2.24 JK Cement Ltd. Cement 2.22 Hawkins Cooker Ltd Household Appliances 2.18 Hindustan Petroleum Corporation Ltd Petroleum Products 2.18 Kewal Kiran Clothing Limited. Textile Products 2.17 ICICI Bank Ltd. Banks 2.12 Persistent Systems Limited Software 2.07 SRF Ltd. Textile Products 2.07 Divi s Laboratories Limited Pharmaceuticals 2.05 Alkem Laboratories Ltd Pharmaceuticals 1.96 Bajaj Finserv Ltd. Finance 1.87 MRF Limited Auto Ancillaries 1.75 Britannia Industries Ltd. Consumer Non Durables 1.72 Va Tech Wabag Limited Engineering Services 1.70 Mahindra & Mahindra Financial Services Ltd. Finance 1.68 Bharat Forge Ltd. Industrial Products 1.66 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.65 Shriram Transport Finance Co Ltd. Finance 1.57 Thermax Ltd. Industrial Capital Goods 1.56 Motherson Sumi Systems Ltd. Auto Ancillaries 1.52 Bajaj Finance Limited Finance 1.49 Total amount invested (Rs) Total Value as on Jun 30, 2016 (Rs) Returns (%) Nifty Midcap 100 (Rs)# Nifty Midcap 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Axis Bank Ltd Banks 1.46 Voltas Ltd. Construction Project 1.46 Arvind Ltd Textile Products 1.42 Pennar Engineered Building Systems Limited Ferrous Metals 1.35 Sundaram Finance Ltd. Finance 1.33 RBL Bank Ltd Banks 1.32 PVR Ltd. Media and Entertainment 1.30 Havells India Ltd. Consumer Durables 1.28 Cadila Healthcare Ltd. Pharmaceuticals 1.26 Jubilant Foodworks Limited Consumer Non Durables 1.22 Jk Lakshmi Cement Ltd. Cement 1.18 Adani Port and Special Economic Zone Limited Transportation 1.17 Kansai Nerolac Paints Ltd Consumer Non Durables 1.14 Navneet Education Ltd. Media and Entertainment 1.14 Apollo Hospitals Enterprises Ltd. Healthcare Services 1.09 HSIL Ltd. Consumer Durables 1.08 NIIT Technologies Ltd Software 0.98 UPL Ltd Pesticides 0.97 Zuari Agro Chemicals Ltd Fertilisers 0.97 SKF India Ltd Industrial Products 0.90 Bank Of Baroda Banks 0.86 Bharat Petroleum Corporation Ltd. Petroleum Products 0.86 WPIL Ltd Industrial Products 0.79 Balrampur Chini Mills Ltd Consumer Non Durables 0.69 Power Mech Projects Ltd Power 0.57 Supreme Industries Limited Industrial Products 0.49 Union Bank Of India Banks 0.19 CNX NIFTY Put Option - September CNX NIFTY Put Option - September Listed/Awaiting Listing on Stock Exchange - Total Collateral Borrowing & Lending obligation 3.12 Net Current /(Liabilities) 0.26 Inception : - February 24,2005. The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Mid-cap NAV as on August 31, 2016: `34.68 (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Consumer Durables Chemicals Others Cement Textile Products Pharmaceuticals Consumer Non Durables Media & Entertainment Industrial Products Finance Midcap and Small cap stocks as a % age of Net : 80.17% * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,370, , ,754 1,073,157 1,677,872 2,870,661 3,603, , , ,332 1,356,476 2,351,899 3,001, , , ,087 1,152,292 1,912,086 2,477, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities predominantly in mid cap stocks. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 10

12 EQUITY SCHEMES KOTAK EMERGING EQUITY An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities, by investing predominantly in mid and small cap companies. However, there is no assurance that the objective of the scheme will be realized. March 30, 2007 Mr. Pankaj Tibrewal* S&P BSE MID SMALL CAP AAUM (` In Crores) AAUM as on August 31, 2016: `1, AUM (` In Crores) AUM as on August 31, 2016: ` 1, A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 32.83% Beta: 0.94 ## Sharpe :1.97 Standard Deviation : 17.14% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.54% (FBIL Overnight MIBOR rate as on 31st August 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: i) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1%. ii) For redemption/switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil. Note Any exit load charged (net off Service Tax, if any) shall be credited back to the respective scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 2.24% Direct: 1.03% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) V-Guard Industries Ltd. Industrial Capital Goods 3.34 Whirlpool of India Ltd. Consumer Durables 3.32 Finolex Cables Ltd. Industrial Products 3.30 The Ramco Cements Ltd Cement 3.13 Solar Industries India Limited Chemicals 2.84 Fag Bearings India Ltd. Industrial Products 2.83 Atul Ltd. Chemicals 2.63 DB Corp Limited Media and Entertainment 2.63 IndusInd Bank Ltd. Banks 2.55 SRF Ltd. Textile Products 2.53 Hawkins Cooker Ltd Household Appliances 2.45 Federal Bank Ltd. Banks 2.44 Strides Shasun Ltd. Pharmaceuticals 2.36 Alkem Laboratories Ltd Pharmaceuticals 2.26 Persistent Systems Limited Software 2.21 Shriram City Union Finance Ltd. Finance 2.11 Carborundum Universal Ltd. Industrial Products 2.08 PVR Ltd. Media and Entertainment 1.98 Indraprastha Gas Ltd. Gas 1.91 Kewal Kiran Clothing Limited. Textile Products 1.89 ICICI Bank Ltd. Banks 1.85 Navneet Education Ltd. Media and Entertainment 1.76 Mahindra & Mahindra Financial Services Ltd. Finance 1.70 Motherson Sumi Systems Ltd. Auto Ancillaries 1.70 Sundaram Finance Ltd. Finance 1.56 Finolex Industries Ltd. Industrial Products 1.51 Va Tech Wabag Limited Engineering Services 1.49 Bajaj Finance Limited Finance 1.48 Jk Lakshmi Cement Ltd. Cement 1.48 Divi s Laboratories Limited Pharmaceuticals 1.45 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.40 Pennar Engineered Building Systems Limited Ferrous Metals 1.38 Britannia Industries Ltd. Consumer Non Durables 1.35 SKF India Ltd Industrial Products 1.35 PNC INFRATECH LIMITED Construction Project 1.27 Ramkrishna Forgings Ltd. Industrial Products 1.21 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Jun 30, 2016 (Rs) Returns (%) S&P BSE MidSmallCap (Rs)# S&P BSE MidSmallCap Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Axis Bank Ltd Banks 1.19 Max Financial Services Ltd. Finance 1.11 Coromandel International Ltd. Fertilisers 1.09 Jubilant Foodworks Limited Consumer Non Durables 1.08 Greaves Cotton Ltd. Industrial Products 0.99 Equitas Holdings Ltd Finance 0.98 Oberoi Realty Ltd Construction 0.89 Zuari Agro Chemicals Ltd Fertilisers 0.86 Maharashtra Seamless Ltd. Ferrous Metals 0.83 D-Link (India) Ltd Hardware 0.78 WPIL Ltd Industrial Products 0.78 Engineers India Ltd. Construction Project 0.73 GMM Pfaudler Ltd. Engineering 0.67 IDFC Bank Limited Banks 0.67 Kirloskar Brothers Ltd. Industrial Products 0.67 Power Mech Projects Ltd Power 0.66 Supreme Industries Limited Industrial Products 0.61 Bank Of Baroda Banks 0.55 Kec International Ltd. Power 0.54 Multi Commodity Exchange of India Limited Finance 0.51 IFB Industries Ltd. Consumer Durables 0.40 Blue Dart Express Ltd. Transportation 0.35 Max India Limited Healthcare Services 0.32 KPIT Technologies LImited Software 0.27 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.23 Collateral Borrowing & Lending obligation 7.42 Net Current /(Liabilities) 0.09 Inception : - March 30, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Emerging Equity NAV as on August 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Industrial Products Banks Consumer Durables Finance Cement Media and Entertainment CBLO & Term Deposits & Rev.Repo Chemicals Textile Products Others Pharmaceuticals Midcap and Small cap stocks as a % age of Net : 85.18% * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month year 3 years 5 years 7 years Since Inception 120, , , ,000 1,120, , ,788 1,169,933 1,811,581 2,733, , , ,974 1,341,323 2,034, , , ,087 1,152,292 1,728, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities predominantly in mid & small cap companies * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 11

13 EQUITY SCHEMES KOTAK INFRASTRUCTURE & ECONOMIC REFORM FUND (formerly known as PineBridge Infrastructure & Economic Reform Fund ) An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the is to generate long-term capital appreciation f ro m a d i v e r s i f i e d p o r t f o l i o o f predominantly (at least 65%) equity and equity-related securities of companies involved in economic development of India as a result of potential investments in infrastructure and unfolding economic reforms. There is no assurance that the investment objective of the will be achieved. However, there is no assurance that the objective of the scheme will be realized. February 25, 2008 Mr. Harish Krishnan S&P BSE 100 AAUM (` In Crores) AAUM as on August 31, 2016: ` AUM (` In Crores) AUM as on August 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover:31.88% Beta: 1.11 ## Sharpe :1.31 Standard Deviation : 20.23% Source: ICRAMFI Explorer. ## Risk rate assumed to be 6.54% (FBIL Overnight MIBOR rate as on 31st August 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the ; iv) Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 2.60% Direct: 1.15% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Shree Cement Ltd. Cement 8.45 Ultratech Cement Ltd. Cement 7.66 Indraprastha Gas Ltd. Gas 6.25 Larsen And Toubro Ltd. Construction Project 6.17 SKF India Ltd Industrial Products 5.71 Kirloskar Oil Engines Ltd. Industrial Products 4.97 Thermax Ltd. Industrial Capital Goods 4.77 Bharti Airtel Ltd. Telecom - Services 4.38 KSB Pump Ltd Industrial Products 4.22 Cummins India Ltd. Industrial Products 3.86 Fag Bearings India Ltd. Industrial Products 3.73 AIA Engineering Limited Industrial Capital Goods 3.31 Solar Industries India Limited Chemicals 3.20 Mahanagar Gas Ltd Gas 3.13 Container Corporation of India Ltd. Transportation 2.68 Siemens Ltd. Industrial Capital Goods 2.66 Supreme Industries Limited Industrial Products 2.56 Total amount invested (Rs) Total Value as on Jun 30, 2016 (Rs) Returns (%) S&P BSE 100 (Rs)# S&P BSE 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Gateway Distriparks Ltd. Transportation 2.36 Adani Port and Special Economic Zone Limited Transportation 2.13 Kajaria Ceramics Ltd. Construction 2.11 MRF Limited Auto Ancillaries 2.08 Mahindra & Mahindra Financial Services Ltd. Finance 1.96 National Thermal Power Corporation Limited Power 1.81 Power Grid Corporation Of India Ltd Power 1.65 Gujarat Gas Company Ltd Gas 1.60 Grasim Industries Ltd. Cement 1.40 CESC Ltd. Power 1.20 Bharat Electronics Ltd Industrial Capital Goods 0.98 Alstom India Limited Industrial Capital Goods 0.34 Listed/Awaiting Listing on Stock Exchange - Total Collateral Borrowing & Lending obligation 2.70 Net Current /(Liabilities) Systematic Investment Plan (SIP) If you had invested `10,000 every month Inception : - February 25, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Infrastructure & Economic Reform Fund NAV as on August 31, 2016: ` (Dividend Option), `18.28 (Direct Dividend Option), `17.571(Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Industrial Products Cement Power Industrial Capital Goods Telecom - Services Gas Transportation Construction Project CBLO & Term Deposits & Rev.Repo Chemicals Others 1 year 3 years 5 years 7 years Since Inception 120, , , ,000 1,010, , , ,301 1,418,620 1,887, , , ,744 1,158,704 1,546, , , ,087 1,152,292 1,530, Investors understand that their principal will be at high risk Long term capital growth Long term capital appreciation by investing in equity and equity related instruments of companies contributing to infrastructure and economic development of India * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. For last three dividends, please refer page no For scheme performance, please refer page no

14 EQUITY SCHEMES KOTAK BALANCE An Open - Ended Balanced Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium To achieve growth by investing in equity & equity related instruments, balanced with income generation by investing in debt &money market instruments. However, there is no assurance that the objective of the scheme will be realized. November 25, 1999 s Mr. Pankaj Tibrewal and Mr. Abhishek Bisen* Crisil Balanced Fund AAUM (` In Crores) AAUM as on August 31, 2016: ` AUM (` In Crores) AUM as on August 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Half Yearly (25th of Mar/Sep) Ratios Portfolio Turnover: 45.63% Beta: 1.08 ## Sharpe : 0.97 Standard Deviation : 11.33% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.54% (FBIL Overnight MIBOR rate as on 31st August 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.52% Direct: 1.26% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 3.48 ICICI Bank Ltd. Banks 2.96 Infosys Ltd. Software 2.49 IndusInd Bank Ltd. Banks 2.31 Maruti Suzuki India Limited Auto 2.21 Larsen And Toubro Ltd. Construction Project 1.94 Reliance Industries Ltd. Petroleum Products 1.94 Tata Motors Ltd. Auto 1.77 JK Cement Ltd. Cement 1.74 Cipla Ltd. Pharmaceuticals 1.71 Fag Bearings India Ltd. Industrial Products 1.68 Axis Bank Ltd Banks 1.67 The Ramco Cements Ltd Cement 1.66 State Bank Of India Banks 1.62 DB Corp Limited Media and Entertainment 1.56 ITC Ltd. Consumer Non Durables 1.50 SRF Ltd. Textile Products 1.47 Strides Shasun Ltd. Pharmaceuticals 1.44 Whirlpool of India Ltd. Consumer Durables 1.34 Mahindra & Mahindra Ltd. Auto 1.33 Finolex Cables Ltd. Industrial Products 1.24 Atul Ltd. Chemicals 1.22 HDFC Ltd. Finance 1.19 Solar Industries India Limited Chemicals 1.18 Ultratech Cement Ltd. Cement 1.18 Hindustan Petroleum Corporation Ltd Petroleum Products 1.09 Va Tech Wabag Limited Engineering Services 1.00 Tata Consultancy Services Ltd. Software 0.91 Zee Entertainment Enterprises Ltd Media and Entertainment 0.91 Carborundum Universal Ltd. Industrial Products 0.89 Engineers India Ltd. Construction Project 0.88 Bharat Forge Ltd. Industrial Products 0.86 HCL Technologies Ltd. Software 0.86 Motherson Sumi Systems Ltd. Auto Ancillaries 0.84 Persistent Systems Limited Software 0.75 Bajaj Finserv Ltd. Finance 0.73 Navkar Corporation Limited Transportation 0.72 The Indian Hotels Company Ltd. Hotels 0.72 Equitas Holdings Ltd Finance 0.71 Thermax Ltd. Industrial Capital Goods 0.70 Ramkrishna Forgings Ltd. Industrial Products 0.69 Adani Port and Special Economic Zone Limited Transportation 0.65 Oil & Natural Gas Total amount invested (Rs) Total Value as on Jun 30, 2016 (Rs) Returns (%) Crisil Balanced Fund Index (Rs)# Crisil Balanced Fund Index Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SECTOR ALLOCATION (%) Banks Cement Software Finance CBLO & Term Deposits & Rev.Repo Pharmaceuticals Auto Debentures and Bonds Government Dated Securities Others Industrial Products Corporation Ltd. Oil 0.63 Voltas Ltd. Construction Project 0.63 Jubilant Foodworks Limited Consumer Non Durables 0.61 UPL Ltd Pesticides 0.61 Havells India Ltd. Consumer Durables 0.60 Pennar Engineered Building Systems Limited Ferrous Metals 0.54 Kirloskar Oil Engines Ltd. Industrial Products 0.53 HDFC Ltd. Warrants Finance 0.51 Coal India Ltd. Minerals/Mining 0.48 Bank Of Baroda Banks 0.46 Colgate Palmolive (India ) Ltd. Consumer Non Durables 0.45 Federal Bank Ltd. Banks 0.45 Mahindra & Mahindra Financial Services Ltd. Finance 0.37 IDFC Bank Limited Banks 0.33 Arvind Ltd Textile Products 0.32 Balrampur Chini Mills Ltd Consumer Non Durables 0.32 Lupin Ltd. Pharmaceuticals 0.30 V.S.T Tillers Tractors Ltd Auto 0.26 Divi s Laboratories Limited Pharmaceuticals 0.17 Listed/Awaiting Listing on Stock Exchang - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions LIC Housing Finance Ltd. CRISIL AAA 0.14 Tata Sons Ltd. CRISIL AAA 0.05 Corporate Debt/Financial Institutions - Total 0.19 Public Sector Undertakings Bank of India CRISIL A Andhra Bank CRISIL AA Public Sector Undertakings - Total 3.31 Government Dated Securities 7.59% Central Government SOV % State Government SOV % Central Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV 0.02 Government Dated Securities - Total Collateral Borrowing & Lending obligation 7.14 Net Current /(Liabilities) SYSTEMATIC INVESTMENT PLAN (SIP) Systematic Investment Plan (SIP) If you had invested `10,000 every month 1 year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 2,000, , , ,930 1,166,840 1,952,577 7,480, , , ,899 1,163,296 1,930,371 NA NA 125, , ,087 1,152,292 1,912,086 6,604, Inception : - November 25,1999. The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Balance NAV as on August 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option) ` (Direct Growth Option) Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities balanced with income generation by investing in debt & money market instruments * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 13 * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no 44-53

15 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and by investing the balance in debt and money market instruments. However, there is no assurance that the objective of the scheme will be realized. September 29, 2005 Mr. Deepak Gupta* Crisil Liquid Fund AAUM (` In Crores) AAUM as on August 31, 2016:`4, AUM (` In Crores) AUM as on August 31, 2016: ` 5, A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth (applicable for all plans) Dividend Frequency Monthly (Monday preceding the last Thursday of the month), Bimonthly (Monday preceding the last Thursday of the following months - January, March, May, July, September, November) Ratio Portfolio Turnover: % Beta: 0.70 ## Sharpe : 2.32 Standard Deviation : 0.57 Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.54% (FBIL Overnight MIBOR rate as on 31st August 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 months & above Entry Load: Nil. Exit Load: I) For redemptions/switch outs (including STP/SWP) within 30 days from the date of allotment of units, irrespective of the amount of investment: 0.25% II) For redemptions/switch outs (including STP/SWP) after 30 days from the date of allotment of units, irrespective of the amount of investment: Nil Note - 1) Any exit load charged (net off Service Tax, if any ) shall be credited back to the. 2) Units issued on reinvestment of dividends shall not be subject to exit load (applicable for all plans) Regular: 1.11% Direct:0.60% % to Net Derivatives Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Hedged HDFC Bank Ltd. Banks Shriram Transport Finance Co Ltd. Finance Sun Pharmaceuticals Industries Ltd. Pharmaceuticals United Spirits Ltd. Consumer Non Durables Infosys Ltd. Software Reliance Industries Ltd. Petroleum Products Aurobindo Pharma Ltd. Pharmaceuticals Grasim Industries Ltd. Cement Bharat Financial Inclusion Limited Finance Indiabulls Housing Finance Ltd. Finance Ashok Leyland Ltd. Auto Reliance Infrastructure Ltd Power IDFC Limited Finance Tata Motors Ltd - DVR Auto Hero MotoCorp Ltd. Auto Indian Oil Corporation Ltd Petroleum Products HDFC Ltd. Finance Reliance Capital Ltd. Finance MRF Limited Auto Ancillaries Aditya Birla Nuvo Limited Services Exide Industries Ltd Auto Ancillaries Pidilite Industries Ltd. Chemicals Rural Electrification Corporation Ltd Finance Tata Steel Limited. Ferrous Metals Maruti Suzuki India Limited Auto Reliance Communications Ltd. Telecom - Services Mahindra & Mahindra Ltd. Auto Sun TV Limited. Media and Entertainment Tata Global Beverages Limited Consumer Non Durables Tata Motors Ltd. Auto L&T Finance Holdings Ltd Finance Lupin Ltd. Pharmaceuticals Strides Shasun Ltd. Pharmaceuticals Power Grid Corporation Of India Ltd Power Reliance Power Ltd Power Hindustan Petroleum Corporation Ltd Petroleum Products Dewan Housing Finance Corporation Ltd. Finance ITC Ltd. Consumer Non Durables Eicher Motors Ltd Auto Larsen And Toubro Ltd. Construction Project Tata Power Co. Ltd. Power Britannia Industries Ltd. Consumer Non Durables NCC Limited Construction Project Dish TV India Ltd. Media and Entertainment Jain Irrigation Systems Ltd. Industrial Products National Thermal Power Corporation Limited Power Oracle Financial Services Software Ltd Software Tata Elxsi Ltd. Software Adani Port and Special Economic Zone Limited Transportation IRB Infrastructure Developers Ltd Construction Karnataka Bank Ltd Banks Asian Paints Ltd. Consumer Non Durables Wipro Ltd. Software Tata Communications Ltd Telecom - Services Adani Power Ltd Power Indraprastha Gas Ltd. Gas Zee Entertainment Enterprises Ltd Media and Entertainment Bosch Limited Auto Ancillaries Housing Development and Infrastructure Limited Construction Glenmark Pharmaceuticals Ltd Pharmaceuticals * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no

16 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth 15 % to Net Derivatives Tata Consultancy Services Ltd. Software Vedanta Ltd. Minerals/Mining DLF Limited Construction CEAT Ltd. Auto Ancillaries JSW Steel Ltd. Ferrous Metals Hindustan Unilever Ltd. Consumer Non Durables TV18 Broadcast Ltd Media and Entertainment Century Textiles & Industries Ltd. Cement Hexaware Technologies Ltd. Software India Cements Ltd. Cement Ultratech Cement Ltd. Cement Granules India Ltd. Pharmaceuticals Jindal Steel & Power Ltd. Ferrous Metals Oil India Limited Oil NHPC Limited Power PTC India Ltd. Power Dabur India Ltd Consumer Non Durables GMR Infrastructure Ltd. Construction Project Indiabulls Real Estate Ltd Construction Apollo Hospitals Enterprises Ltd. Healthcare Services UPL Ltd Pesticides Indo Count Industries Ltd. Textiles - Cotton Coal India Ltd. Minerals/Mining Wockhardt Ltd. Pharmaceuticals Apollo Tyres Ltd. Auto Ancillaries Biocon Ltd. Pharmaceuticals IFCI Ltd. Finance Sintex Industries Ltd. Industrial Products Bharti Infratel Ltd. Telecom - Equipment & Accessories The South Indian Bank Ltd. Banks Hindalco Industries Ltd Non - Ferrous Metals LIC Housing Finance Ltd. Finance Andhra Bank Banks Godrej Consumer Products Ltd. Consumer Non Durables ICICI Bank Ltd. Banks Ambuja Cements Ltd Cement Cairn India Limited Oil Kaveri Seed Company Ltd. Consumer Non Durables Bharat Earth Movers Ltd. Industrial Capital Goods Crompton Greaves Ltd. Industrial Capital Goods Marico Ltd. Consumer Non Durables NMDC Ltd. Minerals/Mining Bank Of Baroda Banks Castrol (India ) Ltd. Petroleum Products Havells India Ltd. Consumer Durables Jet Airways (India) Ltd. Transportation Mcleod Russel India Ltd Consumer Non Durables Tech Mahindra Ltd. Software Titan Company Ltd. Consumer Durables Torrent Pharmaceuticals Ltd. Pharmaceuticals KPIT Technologies LImited Software Oriental Bank of Commerce Banks Bajaj Auto Ltd. Auto Siemens Ltd. Industrial Capital Goods Tata Chemicals Ltd. Chemicals JSW Energy Ltd. Power Power Finance Corporation Ltd. Finance Adani Enterprises Ltd Trading CESC Ltd. Power IndusInd Bank Ltd. Banks Container Corporation of India Ltd. Transportation Jaiprakash Associates Ltd Construction NIIT Technologies Ltd Software ACC Ltd. Cement

17 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth % to Net Derivatives Cadila Healthcare Ltd. Pharmaceuticals GAIL (India) Ltd. Gas Godrej Industries Ltd Consumer Non Durables Hindustan Zinc Ltd. Non - Ferrous Metals Oil & Natural Gas Corporation Ltd. Oil Ajanta Pharma Ltd. Pharmaceuticals United Breweries Ltd. Consumer Non Durables Divi s Laboratories Limited Pharmaceuticals Dr Reddys Laboratories Ltd Pharmaceuticals Engineers India Ltd. Construction Project HCL Technologies Ltd. Software MindTree Ltd. Software Steel Authority of India Ltd. Ferrous Metals Union Bank Of India Banks Hedged - Total Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Liquid Plan A Mutual Fund Units 2.81 Kotak Floater Short Term Direct Growth Mutual Fund Units 0.79 Mutual Fund Units - Total 3.60 Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Kotak Mahindra Prime Ltd. CRISIL AAA 3.67 Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 2.97 Corporate Debt/Financial Institutions - Total 6.64 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Tata Motors Finance Ltd ICRA A Gruh Finance Ltd ICRA A Corporate Debt/Financial Institutions - Total 7.21 TERM DEPOSITS Kotak Mahindra Bank Ltd AXIS Bank Ltd. 3 IndusInd Bank Ltd Ratnakar Bank Ltd 1.18 HDFC Bank Ltd Term Deposits - Total Collateral Borrowing & Lending obligation 0.53 Net Current /(Liabilities) 3.06 Notes: Term Deposit as provided above is towards margin for derivatives transactions Kotak Equity Arbitrage NAV as on August 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option), ` (Bimonthly Option), ` (Direct Bimonthly Option) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Auto Others Power Pharmaceuticals Finance Petroleum Products Software Consumer Non Durables Debentures and Bonds Commercial Paper (CP)/Certificate of Deposits (CD) Investors understand that their principal will be at moderately low risk Income from arbitrage opportunities in the equity market Investment in arbitrage opportunities in the cash & derivatives segment of the equity market. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 16

18 EQUITY SCHEMES KOTAK EQUITY SAVINGS FUND An Open Ended Equity Fund Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and enhance returns with a moderate exposure in equity & equity related instruments. There is no assurance or guarantee that the investment objective of the scheme will be achieved. However, there is no assurance that the objective of the scheme will be realized. October 13, 2014 s Mr. Deepak Gupta & Mr. Abhishek Bisen* 75% of Crisil Liquid Fund & 25% in Nifty 50 AAUM (` In Crores) AAUM as on August 31, 2016: ` AUM (` In Crores) AUM as on August 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every month) Quarterly (20th of March, June, September and December of every year) Ratios Portfolio Turnover: % Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 for purchase and for `0.01 for switches Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemption / switch out of upto 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil. ii) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%. iii) If units are redeemed or switched out on or after 1 year from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.62% Direct: 0.97% % to Net - Derivatives Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Non-Hedge HCL Technologies Ltd. Software HDFC Bank Ltd. Banks 1.79 Bharat Petroleum Corporation Ltd. Petroleum Products 1.25 Grasim Industries Ltd. Cement 1.19 Infosys Ltd. Software 1.19 Hero MotoCorp Ltd. Auto 1.17 ITC Ltd. Consumer Non Durables 1.16 Asian Paints Ltd. Consumer Non Durables 1.15 IndusInd Bank Ltd. Banks 1.15 HDFC Ltd. Warrants Finance 0.95 Power Grid Corporation Of India Ltd Power 0.85 National Thermal Power Corporation Limited Power 0.72 Tata Steel Limited. Ferrous Metals 0.61 Reliance Industries Ltd. Petroleum Products 0.60 Bajaj Finance Limited Finance 0.59 Hindustan Unilever Ltd. Consumer Non Durables 0.55 Geometric Software Solutions Co Ltd Software 0.51 Tata Motors Ltd. Auto 0.51 ACC Ltd. Cement 0.50 Zee Entertainment Enterprises Ltd Media and Entertainment 0.50 Yes Bank Ltd Banks 0.48 Petronet LNG Ltd. Gas 0.46 Axis Bank Ltd Banks 0.43 ICICI Bank Ltd. Banks 0.42 Maruti Suzuki India Limited Auto 0.40 Ambuja Cements Ltd Cement 0.37 Ultratech Cement Ltd. Cement 0.35 Biocon Ltd. Pharmaceuticals 0.33 Larsen And Toubro Ltd. Construction Project 0.33 Mahindra & Mahindra Ltd. Auto 0.33 The Ramco Cements Ltd Cement 0.33 Bajaj Auto Ltd. Auto 0.32 Eicher Motors Ltd Auto 0.32 Hindalco Industries Ltd Non - Ferrous Metals 0.31 JSW Steel Ltd. Ferrous Metals 0.29 Bosch Limited Auto Ancillaries 0.28 GAIL (India) Ltd. Gas 0.25 Wipro Ltd. Software 0.20 RBL Bank Ltd Banks 0.19 Tata Consultancy Services Ltd. Software 0.18 Dr Reddys Laboratories Ltd Pharmaceuticals 0.17 HDFC Ltd. Finance 0.17 Lupin Ltd. Pharmaceuticals 0.16 Pidilite Industries Ltd. Chemicals 0.15 Equitas Holdings Ltd Finance 0.11 Shriram Transport Finance Co Ltd. Finance 0.11 The Indian Hotels Company Ltd. Hotels 0.10 Bharti Airtel Ltd. Telecom - Services 0.09 Britannia Industries Ltd. Consumer Non Durables 0.09 Tech Mahindra Ltd. Software 0.08 Vedanta Ltd. Minerals/Mining 0.07 Alkem Laboratories Ltd Pharmaceuticals 0.06 Marico Ltd. Consumer Non Durables 0.06 Ashok Leyland Ltd. Auto 0.05 Aurobindo Pharma Ltd. Pharmaceuticals 0.04 CNX NIFTY Call Option - December Divi s Laboratories Limited Pharmaceuticals 0.04 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.03 Chennai Super Kings Cricket Ltd. Media and Entertainment 0.02 Ujjivan Financial Services Ltd Finance 0.02 Mahindra & Mahindra Financial Services Ltd. Finance 0.01 Non-Hedged- Total Hedged GMR Infrastructure Ltd. Construction Project Jain Irrigation Systems Ltd. Industrial Products Karnataka Bank Ltd Banks Aurobindo Pharma Ltd. Pharmaceuticals Infosys Ltd. Software HDFC Bank Ltd. Banks IDFC Limited Finance Reliance Capital Ltd. Finance Dish TV India Ltd. Media and Entertainment Housing Development and Infrastructure Limited Construction Sun Pharmaceuticals Industries Ltd. Pharmaceuticals Tata Communications Ltd Telecom - Services Indiabulls Housing Finance Ltd. Finance Reliance Communications Ltd. Telecom - Services L&T Finance Holdings Ltd Finance Wockhardt Ltd. Pharmaceuticals Ashok Leyland Ltd. Auto Century Textiles & Industries Ltd. Cement Bharat Financial Inclusion Limited Finance HDFC Ltd. Finance IRB Infrastructure Developers Ltd Construction Tata Steel Limited. Ferrous Metals NCC Limited Construction Project MRF Limited Auto Ancillaries India Cements Ltd. Cement Maruti Suzuki India Limited Auto Reliance Power Ltd Power Dewan Housing Finance Corporation Ltd. Finance Shriram Transport Finance Co Ltd. Finance Sun TV Limited. Media and Entertainment Havells India Ltd. Consumer Durables Glenmark Pharmaceuticals Ltd Pharmaceuticals Indian Oil Corporation Ltd Petroleum Products Mahindra & Mahindra Ltd. Auto Rural Electrification Corporation Ltd Finance Asian Paints Ltd. Consumer Non Durables Reliance Industries Ltd. Petroleum Products Tech Mahindra Ltd. Software Aditya Birla Nuvo Limited Services Lupin Ltd. Pharmaceuticals Pidilite Industries Ltd. Chemicals Vedanta Ltd. Minerals/Mining ITC Ltd. Consumer Non Durables * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no 44-53

19 EQUITY SCHEMES KOTAK EQUITY SAVINGS FUND An Open Ended Equity Fund % to Net - Derivatives Adani Port and Special Economic Zone Limited Transportation Larsen And Toubro Ltd. Construction Project IndusInd Bank Ltd. Banks Indiabulls Real Estate Ltd Construction Tata Motors Ltd - DVR Auto Adani Power Ltd Power LIC Housing Finance Ltd. Finance United Spirits Ltd. Consumer Non Durables Grasim Industries Ltd. Cement Cairn India Limited Oil Siemens Ltd. Industrial Capital Goods Cipla Ltd. Pharmaceuticals Bank Of Baroda Banks Biocon Ltd. Pharmaceuticals Reliance Infrastructure Ltd Power Tata Chemicals Ltd. Chemicals HCL Technologies Ltd. Software IFCI Ltd. Finance JSW Energy Ltd. Power Tata Global Beverages Limited Consumer Non Durables Tata Motors Ltd. Auto Hindustan Unilever Ltd. Consumer Non Durables Torrent Pharmaceuticals Ltd. Pharmaceuticals Power Grid Corporation Of India Ltd Power Wipro Ltd. Software DLF Limited Construction Jet Airways (India) Ltd. Transportation Tata Elxsi Ltd. Software Coal India Ltd. Minerals/Mining Hindalco Industries Ltd Non - Ferrous Metals NIIT Technologies Ltd Software Oracle Financial Services Software Ltd Software Exide Industries Ltd Auto Ancillaries Granules India Ltd. Pharmaceuticals KPIT Technologies LImited Software TV18 Broadcast Ltd Media and Entertainment Union Bank Of India Banks CESC Ltd. Power Indraprastha Gas Ltd. Gas Tata Power Co. Ltd. Power Bharat Earth Movers Ltd. Industrial Capital Goods Jaiprakash Associates Ltd Construction National Thermal Power Corporation Limited Power NMDC Ltd. Minerals/Mining JSW Steel Ltd. Ferrous Metals Hedged - Total Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Floater Short Term Direct Growth Mutual Fund Units Kotak Liquid Plan A Mutual Fund Units 7.05 Mutual Fund Units - Total Government Dated Securities 8.53% State Government SOV 0.61 Government Dated Securities - Total 0.61 TERM DEPOSITS Kotak Mahindra Bank Ltd Ratnakar Bank Ltd 1.64 IndusInd Bank Ltd Term Deposits - Total 8.84 Collateral Borrowing & Lending obligation 0.66 Net Current /(Liabilities) 1.22 Kotak Equity Savings Fund NAV as on August 31, 2016: ` (Growth Option), ` (Monthly Dividend Option), ` (Quarterly Dividend Option), ` (Direct Growth Option), ` (Direct Monthly Dividend Option), ` (Direct Quarterly Dividend Option) SECTOR ALLOCATION (%) Systematic Investment Plan (SIP) If you had invested `10,000 every month SYSTEMATIC INVESTMENT PLAN (SIP) 1 year Since Inception Total amount invested (Rs) Total Value as on Jun 30, 2016 (Rs) Returns (%) 75% Crisil Liquid Fund Index + 25% Nifty 50 (Rs)# 75% Crisil Liquid Fund Index + 25% Nifty 50 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) CBLO & Term Deposits & Rev.Repo Banks Finance Software Auto Mutual Fund Units Consumer Non Durables Cement Construction Project Pharmaceuticals Others # ; ^ 120, , , , , , , , Investors understand that their principal will be at moderately high risk Income from arbitrage opportunities in the equity market & long term capital growth Investment predominantly in arbitrage opportunities in the cash & derivatives segment of the equity market and equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 18

20 EQUITY SCHEMES KOTAK INDIA GROWTH FUND SERIES I 3 years Close- Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate capital appreciation from a diversified portfolio of equity & equity related instruments across market capitalisation and sectors. There is no assurance or guarantee that the investment objective of the scheme will be achieved. However, there is no assurance that the objective of the scheme will be realized. May 06, 2015 Mr. Harish Krishnan Nifty 200 AAUM (` In Crores) AAUM as on August 31, 2016: ` AUM (` In Crores) AUM as on August 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout & Growth Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 9.54 Infosys Ltd. Software 7 ICICI Bank Ltd. Banks 6.67 IndusInd Bank Ltd. Banks 6.21 Maruti Suzuki India Limited Auto 5.97 Axis Bank Ltd Banks 5.36 Larsen And Toubro Ltd. Construction Project 4.99 Reliance Industries Ltd. Petroleum Products 4.96 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 4.88 Britannia Industries Ltd. Consumer Non Durables 4.86 Ultratech Cement Ltd. Cement 4.77 Tata Motors Ltd - DVR Auto 4.48 Hero MotoCorp Ltd. Auto 4.36 Shree Cement Ltd. Cement 3.86 Equitas Holdings Ltd Finance 2.87 Kajaria Ceramics Ltd. Construction 2.73 Power Grid Corporation Of India Ltd Power 2.71 Persistent Systems Limited Software 2.60 Oracle Financial Services Software Ltd Software 2.55 Jubilant Foodworks Limited Consumer Non Durables 2.51 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.74 Collateral Borrowing & Lending obligation 5.33 Net Current /(Liabilities) 0.05 Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 17.79% The scheme is a close ended scheme. The units of the scheme can be traded on the stock exchange. Entry Load: Nil. Exit Load: Nil. Regular: 2.51% Direct:2.01% Kotak India Growth Fund Series I NAV as on August 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Cement Software Auto Consumer Non Durable Petroleum Products Pharmaceuticals Construction Project CBLO & Term Deposits & Rev.Repo Finance Others Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity and equity related securities across market capitalisation and sectors * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 19

21 DEBT SCHEMES KOTAK LIQUID An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To provide reasonable returns and high level of liquidity by investing in debt and money market instruments of different maturities so as to spread risk across different kinds of issuers in the debt markets. However, there is no assurance that the objective of the scheme will be realized. Regular Plan - October 5, 2000; Institutional Plan - March 14, 2003; Plan A - November 4, 2003 s Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) AAUM as on August 31, 2016: ` 9, AUM (` In Crores) AUM as on August 31, 2016: `7, Plans: a) Regular & b) Institutional (discontinued for further subscriptions w.e.f. October 1, 2012) c) Plan A (Previously known as Institutional Premium Plan) d) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Weekly (Every Monday) (applicable for all plans) Ratios Standard Deviation: 0.19%, Modified Duration: 0.10 yrs, Portfolio Yield: 6.75% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Plan A - `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investment Horizon: 1-15 days Entry Load: Nil. Exit Load: Nil. Note - Units issued on reinvestment of dividends shall not be subject to exit load Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HDFC Ltd. CRISIL AAA 4.00 Corporate Debt/Financial Institutions - Total 4.00 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CARE A India Infoline Finance Limited ICRA A Ultratech Cement Ltd. CRISIL A ECL Finance Limited CRISIL A Tata Motors Ltd. ICRA A Edelweiss Housing Finanance Limited CRISIL A Gruh Finance Ltd ICRA A Manappuram Finance Ltd CRISIL A Tata Motors Finance Ltd ICRA A Tata Motors Finance Ltd CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Steel Authority of India Ltd. CARE A National Bank for Agriculture and Rural Developmen CRISIL A PNB Housing Finance Ltd. CRISIL A Corporation Bank CRISIL A Public Sector Undertakings - Total Reverse Repo 0.73 Treasury Bills 91 Days Treasury Bill 15/09/2016 SOV Days Treasury Bill 27/10/2016 SOV Days Treasury Bill 06/10/2016 SOV Treasury Bill SOV Days Treasury Bill 08/09/2016 SOV Days Treasury Bill 01/09/2016 SOV Days Treasury Bill 29/09/2016 SOV Days Treasury Bill 20/10/2016 SOV Treasury Bill SOV 1.15 Treasury Bills - Total Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.10 years Kotak Liquid Plan A Fund NAV as on August 31, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend) SECTOR ALLOCATION (%) Commercial Paper (CP)/Certificate of Deposits (CD) Debentures and Bonds CBLO & Term Deposits & Rev.Repo Treasury Bills Net Current 0.73 RATING PROFILE CBLO & Term Deposits & Rev.Repo A1+, AAA, SOV Net Current Regular: 0.05% Direct: 0.00% Income over a short term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at low risk * For experience, please refer page For scheme performance, please refer page no

22 DEBT SCHEMES KOTAK FLOATER SHORT TERM An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To reduce the interest rate risk associated with investments in fixed rate instruments by investing predominantly in floating rate securities, money market instruments and using appropriate derivatives. However, there is no assurance that the objective of the scheme will be realized. July 14, 2003 s Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) AAUM as on August 31, 2016: ` 8, AUM (` In Crores) AUM as on August 31, 2016: ` 7, A) Regular Plan B) Direct Plan/Options: Dividend Reinvestment & Growth (applicable for all plans Dividend Frequency Daily, Weekly (Every Monday) and Monthly (12th of every Month) Ratios Standard Deviation: 0.16%, Modified Duration:0.13 yrs, Portfolio Yield: 6.91% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: ` U n d e r growth, weekly dividend and monthly dividend option & `1,00,000 under Daily Dividend Reinvestment option, Investment: `1000 & in multiples of `1 Ideal Investment Horizon: 1-15 days Entry Load: Nil. Exit Load: Nil Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 0.09% Direct: 0.03% Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Emami Ltd. BRICKWORK BWR AA Corporate Debt/Financial Institutions - Total 0.79 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Muthoot Finance Ltd CRISIL A Reliance Jio Infocomm Limited CARE A Adani Port and Special Economic Zone Limited ICRA A Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A1+(SO) 6.19 Gruh Finance Ltd ICRA A Tata Capital Housing Finance Ltd; CRISIL A Edelweiss Commodities Services Ltd. CRISIL A Hindustan Zinc Ltd ICRA A ECL Finance Limited CRISIL A Essel Mining & Industries Ltd. ICRA A Piramal Enterprises Limited ICRA A Adani Transmission Ltd FITCH IND A Vedanta Ltd. CRISIL A Grasim Industries Ltd. CARE A Bharat Aluminum Co. Ltd. CRISIL A Piramal Enterprises Limited CRISIL A Sadbhav Engineering Ltd. CARE A AXIS Bank Ltd. CRISIL A Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A Tata Capital Financial Services Limited CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Small Industries Development Bank Of India. CARE A Power Finance Corporation Ltd. CARE A Steel Authority of India Ltd. CARE A Corporation Bank CRISIL A Public Sector Undertakings - Total 8.66 Treasury Bills 91 Days Treasury Bill 29/09/2016 SOV Days Treasury Bill 15/09/2016 SOV Treasury Bill SOV Treasury Bill SOV Days Treasury Bill 01/09/2016 SOV Treasury Bill SOV Days Treasury Bill 06/10/2016 SOV Days Treasury Bill 20/10/2016 SOV 1.33 Treasury Bills - Total Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.13 years Kotak Floater Short Term Fund NAV as on August 31, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend) SECTOR ALLOCATION (%) Treasury Bills Commercial Paper (CP)/Certificate of Deposits (CD) Net Current Debentures and Bonds A1+, A1+(SO), IND A1+, SOV BWR AA- RATING PROFILE (%) Net Current Income over a short term investment horizon Investment in floating rate securities, debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 21 Investors understand that their principal will be at low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

23 DEBT SCHEMES KOTAK TREASURY ADVANTAGE FUND (Formerly Known as Kotak Floater Long Term ) An Open Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the is to generate returns through investments in debt and money market instruments with a view to reduce the interest rate risk. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. August 13, 2004 Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) AAUM as on August 31, 2016: ` 5, AUM (` In Crores) AUM as on August 31, 2016: ` 5, A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Monthly (12th of every Month) and Weekly (Every Monday) Ratios Standard Deviation:0.47%, Modified Duration: 0.48yrs, Portfolio Yield: 7.65% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: (i) Dividend Reinvestment & Growth- `5000 & above (ii) Dividend Payout (Weekly) - `1,00,00,000 & above Investment: `1000 & in multiples of `1 Ideal Investment Horizon: 1-3 months Entry Load: Nil. Exit Load: Nil. Note - Units issued on reinvestment of dividends shall not be subject to exit load Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Bharti enterprises (Holding) Pvt. Ltd. ^ CRISIL A Tata Power Company Ltd. ICRA AA 5.10 L & T Finance Limited CARE AA+ 4 Shriram Transport Finance Co Ltd. ^ CRISIL AA HDFC Ltd. ^ CRISIL AAA 3.62 Tata Motors Finance Ltd CRISIL AA 3.04 Fullerton India Credit Co. Ltd. ^ CARE AAA 2.36 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 2.36 Shriram Transport Finance Co Ltd. FITCH IND AA Kotak Mahindra Investments Ltd. CRISIL AAA 1.97 Kotak Mahindra Prime Ltd. ^ CRISIL AAA 1.78 Indiabulls Housing Finance Limited CARE AAA 1.58 Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA India Infoline Housing Finance Ltd. ICRA AA 0.98 Bajaj Finance Limited FITCH AAA(IND) 0.50 Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 0.49 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.46 Piramal Enterprises Limited ICRA AA 0.41 Tata Capital Housing Finance Ltd; CRISIL AA Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.23 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA(SO) 0.18 East-North Interconnection Company Limited CRISIL AAA(SO) 0.13 Cholamandalam Investment and Finance Company Ltd ICRA AA 0.10 India Infoline Finance Limited ^ CARE AA 0.10 Shapoorji Pallonji Energy Gujarat Private Limited ICRA AA(SO) 0.06 Tata Sons Ltd. CRISIL AAA 0.03 Corporate Debt/Financial Institutions - Total Public Sector Undertakings State Bank Of India. CRISIL AAA 2.64 Small Industries Development Bank Of India. CARE AAA 0.79 Rural Electrification Corporation Ltd. CRISIL AAA 0.66 Notes: Term Deposit as provided above is towards margin for derivatives transactions ^ Party blocked against Interest Rate Swap (IRS). Power Finance Corporation Ltd. CRISIL AAA 0.43 National Bank for Agriculture and Rural Development CRISIL AAA 0.17 Public Sector Undertakings - Total 4.69 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Larsen and Toubro Ltd. CRISIL A Tata Power Company Ltd. ^ ICRA A Piramal Enterprises Limited ICRA A Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A Bahadur Chand Investments Private Limited ICRA A L & T Infrastructure Development Project Ltd. ICRA A Manappuram Finance Ltd CRISIL A AXIS Bank Ltd. CRISIL A Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A1+(SO) 1.07 ICICI Bank Ltd. ICRA A Gruh Finance Ltd ICRA A HDFC Bank Ltd. ICRA A Muthoot Finance Ltd CRISIL A Tata Capital Housing Finance Ltd; CRISIL A Tata Steel Limited FITCH IND A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Small Industries Development Bank Of India. CARE A National Bank for Agriculture and Rural Development CRISIL A Andhra Bank CARE A Corporation Bank CRISIL A Canara Bank CRISIL A Vijaya Bank CRISIL A IDBI Bank Ltd. CRISIL A Public Sector Undertakings - Total Reverse Repo 0.91 Treasury Bills 91 Days Treasury Bill 17/11/2016 SOV Days Treasury Bill 01/09/2016 SOV Days Treasury Bill 22/09/2016 SOV 0.03 Treasury Bills - Total 6.22 TERM DEPOSITS HDFC Bank Ltd Term Deposits - Total 0.20 Collateral Borrowing & Lending obligation 0.17 Net Current /(Liabilities) 0.17 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.51 years. Kotak Treasury Advantage Fund NAV as on August 31, 2016: ` (Daily Dividend Option), ` (Daily Dividend - Direct), ` (Growth Option), ` (Monthly Dividend Option), ` (Weekly Dividend Option), ` (Monthly Dividend - Direct), ` (Weekly Dividend - Direct), ` (Growth - Direct Option) SECTOR ALLOCATION (%) RATING PROFILE Regular: 0.60% Direct: 0.25% CBLO & Term Deposits & Rev. Repo Commercial Paper (CP)/Certificate of Deposits (CD) Debentures and Bonds Net Current Treasury Bills AA+, IND AA+, AA, AA(SO), AA- A1+, A1+(SO), AAA, AAA(IND), AAA(SO), IND A1+, IND AAA, SOV CBLO & Term Deposits & Rev.Repo Net Current Income over a short term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

24 DEBT SCHEMES KOTAK BANKING AND PSU DEBT FUND Earlier known as Kotak Mahindra Gilt Savings Savings Plan. An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To generate income by predominantly investing in debt & money market securities issued by Banks & PSUs and Reverse repos in such securities, sovereign securities issued by the Central Government and State Governments, and / or any security unconditionally guaranteed by the Govt. of India. However, there is no assurance that the objective of the scheme will be realized. December 29,1998 Mr. Deepak Agrawal* Crisil Liquid Fund AAUM (` In Crores) AAUM as on August 31, 2016: ` AUM (` In Crores) AUM as on August 31, 2016: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Monthly (12th of every Month) & Annual Ratios Standard Deviation: 0.98%, Modified Duration: 2.47 yrs, Portfolio Yield: 7.50% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Dividend Payout, Dividend Re-investment & Growth `5000 & above. Investment: `1000 & in multiples of `1. Ideal Investment Horizon: 1-3 months Entry Load: Nil. Exit Load: Nil Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular:0.50% Direct: 0.15% Debt Instruments Debentures and Bonds Public Sector Undertakings National Bank for Agriculture and Rural Development CRISIL AAA 8.15 Rural Electrification Corporation Ltd. CRISIL AAA 7.83 Canara Bank CRISIL AAA 7.60 PNB Housing Finance Ltd. CARE AAA 6.75 State Bank of Travancore CRISIL AAA 5.15 ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 4.94 Power Finance Corporation Ltd. CRISIL AAA 3.33 Export-Import Bank of India. CRISIL AAA 3.31 Power Finance Corporation Ltd. ICRA AAA 3.04 Punjab National Bank CARE AA 2.20 Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) CRISIL AAA(SO) 1.98 Indian Railway Finance Corporation Ltd. CRISIL AAA 1.51 Public Sector Undertakings - Total Government Dated Securities 8.27% State Government SOV % State Government SOV & State Government SOV 3.29 Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions AXIS Bank Ltd. CRISIL A IndusInd Bank Ltd. CRISIL A ICICI Bank Ltd. ICRA A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Andhra Bank CARE A Public Sector Undertakings - Total 8.42 Collateral Borrowing & Lending obligation 3.51 Net Current /(Liabilities) 1.96 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments 3.16 years. Kotak Banking And PSU Debt Fund NAV as on August 31, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Daily Dividend Reinvestment), ` (Direct Daily Dividend Reinvestment), ` (Annual Dividend), ` (Direct Annual) Commercial Paper (CP)/Certificate of Deposits (CD) Net Current CBLO & Term Deposits & Rev.Repo Net Current CBLO & Term Deposits & Rev.Repo Government Dated Securities Debentures and Bonds A1+, AAA, AAA(SO), IND AAA, SOV AA Income over a short to medium term investment horizon Investment in debt & money market securities of PSUs, Banks & government securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk 23 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

25 DEBT SCHEMES KOTAK DURATION FUND (Formerly known as PineBridge India Short Term Fund) An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The primary objective of the is to generate income through investment primarily in low duration debt & money market securities. However, there is no assurance that the objective of the scheme will be realized. March 6, 2008 Mr. Deepak Agrawal * CRISIL Liquid Fund AAUM (` In Crores) AAUM as on August 31, 2016: ` 3, AUM (` In Crores) AUM as on August 31, 2016: ` 3, A) Regular B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth (dividend payout is available under monthly dividend only) Dividend Frequency Weekly (every Monday), Monthly (12th of every month)and Normal (as decided by Trustees) Ratios Standard Deviation: 0.47%, Modified Duration: 0.74 yrs, Portfolio Yield: 8.50% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Plan A - `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 for purchase and for `0.01 for switches. Ideal Investment Horizon: 1-3 months Entry Load: Nil. Exit Load: Nil. Any exit load charged (net off Service Tax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.00% Direct: 0.25% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Tata Power Company Ltd. ICRA AA 9.06 Bharti enterprises (Holding) Pvt. Ltd. CRISIL A Innovador Realtors Pvt Ltd ( backed by unconditional and irrevocable undertaking by Piramal ) ICRA A1+(SO) 7.14 Shriram Transport Finance Co Ltd. FITCH IND AA Indiabulls Housing Finance Limited CARE AAA 4.67 Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA Pune Solapur Expressways Pvt. Ltd. ( toll road project of Tata Realty & Infrastructure Ltd, 100 subsidiary of Tata Sons ) ICRA A 2.75 Muthoot Finance Ltd ICRA AA Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd ) BRICKWORK BWR AA Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 1.60 Janalakshami Financial Services Ltd. ICRA A Peninsula Land Limited BRICKWORK BWR A 1.56 Sterlite Industries (India) Ltd CRISIL AA Shivprasad Realty Pvt Ltd ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 1.47 HPCL Mittal Energy Ltd. ICRA AA Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 1.20 Sahyadri Agencies Ltd ( Secured by Equity shares of Jyothy Laboratories Ltd ) BRICKWORK BWR A(SO) 1.14 Hero Realty Ltd ( Guaranteed by a Hero Group company ) ICRA A Indostar Capital Finance Private Limited CARE AA Muthoot Fincorp Ltd. CRISIL A 0.97 Intime Properties Ltd. FITCH IND AAA 0.73 India Infoline Finance Limited CARE AA 0.72 Kotak Mahindra Prime Ltd. CRISIL AAA 0.60 Edelweiss Agri Value Chain Limited ( ) CARE AA(SO) 0.59 ECL Finance Limited CARE AA 0.51 Grand View Estate Pvt Ltd ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AA 0.38 Ashirvad Microfinance Private Limited ( 85 subsidiary of Manappuram Finance Ltd ) CRISIL A HDFC Ltd. CRISIL AAA 0.21 Muthoot Finance Ltd CRISIL AA Aspire Home Finance Corporation Ltd ICRA AA Piramal Enterprises Limited ICRA AA 0.01 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Andhra Bank CRISIL AA Bank of Maharashtra CRISIL A Oriental Bank of Commerce ICRA A Rural Electrification Corporation Ltd. CRISIL AAA 0.48 Public Sector Undertakings - Total 2.73 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions HDFC Ltd. ICRA A ICICI Bank Ltd. ICRA A AXIS Bank Ltd. CRISIL A Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A1+(SO) 3.11 Manappuram Finance Ltd CRISIL A Phoenix ARC Pvt Ltd CRISIL A Adani Transmission Ltd FITCH IND A ICICI Bank Ltd. CRISIL A Gruh Finance Ltd ICRA A India Infoline Finance Limited ICRA A Piramal Enterprises Limited ICRA A Tata Motors Finance Ltd ICRA A IndusInd Bank Ltd. CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Export-Import Bank of India. CRISIL A Andhra Bank CARE A Public Sector Undertakings - Total 6.24 TERM DEPOSITS HDFC Bank Ltd Term Deposits - Total 0.62 Collateral Borrowing & Lending obligation 0.36 Net Current /(Liabilities) 2.55 Notes: Term Deposit as provided above is towards margin for derivatives transactions Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.80 years Kotak Duration Fund NAV as on August 31, 2016: ` (Retail Plan-Growth Option), ` (Retail plan Weekly Dividend),` (Retail Plan-Monthly Dividend), ` (Standard Plan-Growth Option), ` (Standard Plan-Weekly Dividend), ` (Standard Plan-Monthly Dividend), ` (Direct Plan- Growth Option), ` (Direct Plan- Weekly Dividend), ` (Direct Plan- Monthly Dividend) SECTOR ALLOCATION (%) Debentures and Bonds RATING PROFILE A1+, A1+(SO), AAA, IND A1+, IND AAA IND AA+, AA, AA(SO), AA-, BWR AA- Net Current A+, A, BWR A, BWR A(SO) Regular income over short term Income by focusing on low duration securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderate risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

26 DEBT SCHEMES KOTAK BOND SHORT TERM An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the is to provide reasonable returns and high level of liquidity by investing in debt instruments such as bonds, debentures and Government securities; and money market i n s t r u m e n t s s u c h a s t r e a s u r y bills,commercial papers, certificates of deposit, including repos in permitted securities of different maturities, so as to spread the risk across different kinds of issuers in the debt markets. The may invest in the call money/termmoney market in terms of RBI guidelines in this respect. To reduce the risk of the portfolio, the may also use various derivative and hedging products from time to time, in the manner permitted by SEBI. Subject to the maximum amount permitted from time to time, the may invest in offshore securities in the manner allowed by SEBI/RBI, provided such investments are in conformity with the investment objective of the and the prevailing guidelines and Regulations. However, there is no assurance that the objective of the scheme will be realized. May 2, 2002 Mr. Deepak Agrawal* Crisil Short - Term Bond Fund AAUM (` In Crores) AAUM as on August 31, 2016: ` 4, AUM (` In Crores) AUM as on August 31, 2016: ` 5, A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every Month), Half Yearly (20th of Mar/Sept) and normal (as decided by Trustees) Ratios Standard Deviation: 1.28%, Modified Duration: 2.63yrs, Portfolio Yield: 7.73% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: (i) Dividend Reinvestment & Growth - `5000 & above (ii) Dividend Payout (Monthly Dividend) - `50,000 & above Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 6 months & above Entry Load: Nil. Exit Load: Nil Total Expense Ratio Regular: 1.10%; Direct: 0.25% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CRISIL AAA 7.87 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 7.47 HDFC Ltd. CRISIL AAA 5.24 Kotak Mahindra Prime Ltd. CRISIL AAA 4.49 Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 3.67 Indiabulls Housing Finance Limited CARE AAA 2.99 Bajaj Finance Limited FITCH AAA(IND) 2.90 Dewan Housing Finance Corporation Ltd. CARE AAA 2.81 ICICI Home Finance Company Limited ICRA AAA 2.32 HDB Financial Services Ltd. CRISIL AAA 2.22 Fullerton India Credit Co. Ltd. CARE AAA 1.87 LIC Housing Finance Ltd. CRISIL AAA 1.37 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 0.74 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.20 East-North Interconnection Company Limited CRISIL AAA(SO) 0.09 Bajaj Finance Limited FITCH IND AAA 0.02 Corporate Debt/Financial Institutions - Total Public Sector Undertakings National Bank for Agriculture and Rural Development CRISIL AAA 8.06 ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 7.15 Power Finance Corporation Ltd. CRISIL AAA 5.50 Small Industries Development Bank Of India. CARE AAA 2.08 State Bank Of India. CRISIL AAA 0.66 Issuer/Instrument Industry/ % to Net Rating Notes: Term Deposit as provided above is towards margin for derivatives transactions Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 3.32 years. Kotak Bond Short Term Fund NAV as on August 31, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Dividend), ` (Direct Dividend), ` (Direct Half Yearly Dividend) SECTOR ALLOCATION (%) Treasury Bills CBLO & Term Deposits & Rev.Repo Debentures and Bonds Government Dated Securities Export-Import Bank of India. CRISIL AAA 0.47 Rural Electrification Corporation Ltd. CRISIL AAA 0.46 Rural Electrification Corporation Ltd. CARE AAA 0.19 Steel Authority of India Ltd. FITCH IND AA 0.19 Public Sector Undertakings - Total Government Dated Securities 7.86% State Government SOV % State Government SOV % State Government SOV % Central Government SOV % State Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV 0.18 Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions AXIS Bank Ltd. CRISIL A Corporate Debt/Financial Institutions - Total 1.14 Public Sector Undertakings Andhra Bank CARE A National Bank for Agriculture and Rural Development CRISIL A Public Sector Undertakings - Total 0.39 Treasury Bills 91 Days Treasury Bill 01/09/2016 SOV 0.74 Treasury Bills - Total 0.74 TERM DEPOSITS HDFC Bank Ltd Term Deposits - Total 0.56 Collateral Borrowing & Lending obligation 0.10 Net Current /(Liabilities) A1+, AAA, AAA(IND), AAA(SO), IND AAA, SOV IND AA CBLO & Term Deposits & Rev.Repo Net Current Income over a medium term horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 25 Investors understand that their principal will be at moderately low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

27 DEBT SCHEMES KOTAK FLEXI DEBT An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To maximize returns through an active management of a portfolio of debt and money market securities. However, there is no assurance that the objective of the scheme will be realized. Regular Plan- December 6, 2004 Plan A - May 26, 2008 Mr. Deepak Agrawal* CRISIL Composite Bond AAUM (` In Crores) AAUM as on August 31, 2016: ` AUM (` In Crores) AUM as on August 31, 2016: ` A) Regular (discontinued for further subscriptions w.e.f. October 1, 2012) b) Plan A (Previously known as Institutional Plan) c) Direct Plan / Options: Dividend Payout, Dividend Reinvestment, Growth & Bonus Dividend Frequency Daily Dividend Reinvestment, Weekly Dividend Reinvestment (Every Monday), Quarterly Dividend Payout and Reinvestment (20th of March, June, September and December of every year) Ratios Standard Deviation: 2.88%, Modified Duration: 4.70 yrs, Portfolio Yield: 7.86% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Plan A - `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investment Horizon: 6 months & above Entry Load: Nil. Exit Load: Nil Regular: 0.90% Direct: 0.35% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Bajaj Finance Limited CARE AAA 5.97 Reliance Utilities And Power Private Limited CRISIL AAA 4.57 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 4.39 Reliance Jio Infocomm Limited CRISIL AAA 3.11 Mahindra & Mahindra Financial Services Ltd. CARE AAA 2.24 LIC Housing Finance Ltd. CRISIL AAA 0.90 Indiabulls Housing Finance Limited CARE AAA 0.74 Shriram Transport Finance Co Ltd. CRISIL AA SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.23 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Canara Bank CRISIL AAA 3.81 Power Finance Corporation Ltd. CRISIL AAA 0.30 Export-Import Bank of India. CRISIL AAA 0.23 Rural Electrification Corporation Ltd. CRISIL AAA 0.06 Public Sector Undertakings - Total 4.40 Government Dated Securities 8.53% State Government SOV % Central Government SOV % Central Government SOV % State Government SOV % State Government SOV % Central Government SOV % State Government SOV % State Government SOV 0.22 Government Dated Securities - Total Collateral Borrowing & Lending obligation 0.46 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 7.29 years Kotak Flexi Debt Plan A Fund NAV as on August 31, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend) SECTOR ALLOCATION (%) RATING PROFILE Net Current CBLO & Term Deposits & Rev.Repo CBLO & Term Deposits & Rev.Repo Government Dated Securities Debentures and Bonds Net Current AA+ AAA, SOV Income over a medium term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

28 DEBT SCHEMES KOTAK INCOME OPPORTUNITIES FUND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the scheme is to generate income by investing in debt /and money market securities across the yield curve and credit spectrum. The scheme would also seek to maintain reasonable liquidity within the fund. However, there is no assurance that the objective of the scheme will be realized. May 11, 2010 s Mr. Deepak Agrawal* Crisil Short Term Bond Fund AAUM (` In Crores) AAUM as on August 31, 2016: ` 2, AUM (` In Crores) AUM as on August 31, 2016: ` 2, A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Weekly (Every Monday), Monthly (12th of every Month), Quarterly (20th of Mar, Jun, Sep and Dec of every Year), Annual (12th of March). Ratios Standard Deviation: 1.19%, Modified Duration: 2.17yrs, Portfolio Yield: 9.35% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: Nil. Exit Load: I) For redemption / switch out of upto 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil. II) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%. iii) If units are redeemed or switched out on or after 1 year from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.60% Direct:0.83% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HPCL Mittal Pipelines Ltd. ICRA AA Reliance Jio Infocomm Limited CRISIL AAA 7.80 HPCL Mittal Energy Ltd. ICRA AA Indiabulls Housing Finance Limited CARE AAA 5.09 Sterlite Industries (India) Ltd CRISIL AA DLF Emporio Ltd CRISIL AA 4.56 Janalakshami Financial Services Ltd. ICRA A Au Financiers (India) Limited FITCH IND A Piramal Enterprises Limited ICRA AA 3.68 Prestige Estates Projects Limited ICRA A Bharti enterprises (Holding) Pvt. Ltd. CRISIL A Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA India Infoline Housing Finance Ltd. ICRA AA 2.21 Edelweiss Agri Value Chain Limited ( ) CARE AA(SO) 2.20 SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) ICRA AA Equitas Micro Finance Ltd. CARE A Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd ) BRICKWORK BWR AA Ashirvad Microfinance Private Limited ( 85 subsidiary of Manappuram Finance Ltd ) CRISIL A Dalmia Bharat Ltd ICRA AA ECL Finance Limited CARE AA 1.42 ECL Finance Limited ICRA AA 1.32 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 1.12 Shriram Transport Finance Co Ltd. FITCH IND AA Peninsula Land Limited ICRA A 0.84 Indostar Capital Finance Private Limited CARE AA Continental Drug Company P Ltd ( Secured by Equity shares of Zee Notes: Term Deposit as provided above is towards margin for derivatives transactions Issuer/Instrument Industry/ % to Net Rating Entertainment Enterprises Ltd ) BRICKWORK BWR A Essel Lucknow Raibareli Toll Roads Limited CARE AAA 0.63 Haldhar Developers Private Limited ( backed by unconditional and irrevocable undertaking by Piramal ) ICRA LAA-(SO) 0.61 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.44 Hero Realty Ltd ( Guaranteed by a Hero Group company ) ICRA A Tata Capital Housing Finance Ltd; CRISIL AA HDFC Ltd. CRISIL AAA 0.05 LIC Housing Finance Ltd. CRISIL AAA 0.04 HDB Financial Services Ltd. CRISIL AAA 0.02 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Bank of India BRICKWORK BWR AA Bank of India Syndicate Bank CRISIL A+ CARE AA Public Sector Undertakings - Total 3.33 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Suraksha Reality Ltd ( Secured by Equity shares of Sun HDFC Ltd. ICRA A Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A1+(SO) 0.44 Pharmaceuticals Industries Ltd ) Manappuram Finance Ltd CARE A1+ CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Andhra Bank CARE A Public Sector Undertakings - Total 0.08 TERM DEPOSITS HDFC Bank Ltd Term Deposits - Total 0.44 Collateral Borrowing & Lending obligation 0.40 Net Current /(Liabilities) 3.26 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.57 years. Kotak Income Opportunities Fund NAV as on August 31, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual). SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Debentures and Bonds Net Current Commercial Paper (CP)/Certificate of Deposits (CD) Investors understand that their principal will be at moderately low risk AA+, IND AA+, AA, AA(SO), AA-, BWR AA-, LAA-(SO) A1+, A1+(SO), AAA A+, BWR A+, IND A+, A CBLO & Term Deposits & Rev.Repo Net Current Income over a medium term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 27 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

29 DEBT SCHEMES KOTAK CORPORATE BOND FUND (Formerly known as PineBridge India Total Return Bond Fund) An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The primary objective of the is to generate income through investment primarily in low duration debt & money market securities. However, there is no assurance that the objective of the scheme will be realized. September 21, 2007 Mr. Deepak Agrawal* CRISIL Composite Bond Fund AAUM (` In Crores) AAUM as on August 31, 2016: ` AUM (` In Crores) AUM as on August 31, 2016: ` Plans: a) Regular & b) Direct Plan Options: Dividend Payout, Dividend Reinvestment and Growth (applicable for all plans) Dividend Frequency Monthly (12th of every Month), Quarterly (20th of Mar, Jun, Sep and Dec of every Year) Ratios Standard Deviation: 1.20%, Modified Duration: 1.76 yrs, Portfolio Yield: 7.62% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1for purchase and for `0.01 for switches. Ideal Investment Horizon: 1 Year & Above Entry Load: Nil. Exit Load: Nil Regular: 0.50% Direct: 0.30% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CRISIL AAA 8.94 Bajaj Finance Limited FITCH IND AAA 6.28 HDFC Ltd. CRISIL AAA 5.90 Reliance Ports And Terminals Limited CRISIL AAA 4.85 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 4.83 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA(SO) 4.17 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 3.92 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 3.44 ECL Finance Limited CARE AA 2.76 Shriram Transport Finance Co Ltd. CRISIL AA Ultratech Cement Ltd. CRISIL AAA 1.25 Inox Air Products Ltd. CRISIL AA 0.69 Mahindra & Mahindra Financial Services Ltd. ICRA AAA 0.69 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Rural Electrification Corporation Ltd. CRISIL AAA 8.37 Power Finance Corporation Ltd. CRISIL AAA 8.05 Small Industries Development Bank Of India. CARE AAA 6.85 ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 6.25 Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) CRISIL AAA(SO) 4.93 Export-Import Bank of India. CRISIL AAA 1.21 Airports Authority of India CRISIL AAA 0.69 National Bank for Agriculture and Rural Development CRISIL AAA 0.68 Steel Authority of India Ltd. FITCH IND AA 0.55 Public Sector Undertakings - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions AXIS Bank Ltd. CRISIL A Corporate Debt/Financial Institutions - Total 1.35 Collateral Borrowing & Lending obligation 7.78 Net Current /(Liabilities) 4.18 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.13 years Kotak Corporate Bond Fund NAV as on August 31, 2016: ` (Standard Plan-Growth Option), ` (Standard Plan- Weekly Dividend),` (Standard Plan-Monthly Dividend), ` (Standard Plan-Quarterly Dividend), ` (Standard Plan-Daily Dividend), ` (Retail Plan-Growth Option), ` (Retail Plan- Weekly Dividend), ` (Retail Plan- Monthly Dividend), ` (Retail Plan-Daily Dividend), ` (Direct Plan- Growth Option), ` (Direct Plan- Monthly Dividend), ` (Institutional Plan-Growth Option) Debentures and Bonds Commercial Paper (CP)/Certificate of Deposits (CD) Net Current CBLO & Term Deposits & Rev.Repo A1+, AAA, AAA(SO), IND AAA AA+, AA, IND AA CBLO & Term Deposits & Rev.Repo Net Current Regular income over short term Income by investing in fixed income securities of varying maturities & credit * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

30 DEBT SCHEMES KOTAK MEDIUM TERM FUND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the scheme is to generate regular income and capital appreciation by investing in a portfolio of medium term debt and money market instruments. However, there is no assurance that the objective of the scheme will be realized. March 21, 2014 Mr. Deepak Agrawal* CRISIL Composite Bond Fund AAUM (` In Crores) AAUM as on August 31, 2016: `1, AUM (` In Crores) AUM as on August 31, 2016: ` 2, A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Quarterly (20th of Mar, Jun, Sep and Dec of every Year), Annually (12th of March) Ratios Standard Deviation: 1.58%, Modified Duration: 2.73yrs, Portfolio Yield: 9.27% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Purchase: `5,000/- and in multiples of 1 for purchases and for `0.01 for switches. Purchase: `1000 & in multiples of `1.for purchases and for `0.01 for switches. Ideal Investment Horizon: 2.5 years & above Entry Load: Nil. Exit Load: i) For redemption / switch out of upto 15% of the initial investment amount (limit) purchased or switched in within 18 months from the date of allotment: Nil. ii) If units redeemed or switched out are in excess of the limit within 18 months from the date of allotment: 2%. iii) If units are redeemed or switched out on or after 18 months from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.70% Direct: 0.84% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CRISIL AAA 9.49 HPCL Mittal Energy Ltd. ICRA AA Dalmia Bharat Ltd ICRA AA Piramal Enterprises Limited ICRA AA 5.40 ECL Finance Limited CARE AA 4.62 Indiabulls Housing Finance Limited CARE AAA 4.49 HPCL Mittal Pipelines Ltd. ICRA AA Prestige Estates Projects Limited ICRA A India Infoline Housing Finance Ltd. ICRA AA 2.96 Birla Corporation Ltd. CARE AA 2.47 SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) ICRA AA Edelweiss Agri Value Chain Limited ( ) CARE AA(SO) 2.41 Reliance Utilities And Power Private Limited CRISIL AAA 2.03 Janalakshami Financial Services Ltd. ICRA A Camden Industries Ltd. ( backed by unconditional and irrevocable undertaking of Axis Capital ) CARE AAA(SO) 1.89 Intime Properties Ltd. FITCH IND AAA 1.89 Equitas Micro Finance Ltd. CARE A Essel Lucknow Raibareli Toll Roads Limited CARE AAA 1.74 ECL Finance Limited ICRA AA 1.73 Peninsula Land Limited ICRA A 1.68 Ashirvad Microfinance Private Limited ( 85 subsidiary of Manappuram Finance Ltd ) CARE A Au Financiers (India) Limited FITCH IND A East-North Interconnection Company Limited CRISIL AAA(SO) 1.25 Manappuram Finance Ltd CRISIL AA Grand View Estate Pvt Ltd ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AA 1.09 Shriram Transport Finance Co Ltd. FITCH IND AA Sterlite Industries (India) Ltd CRISIL AA Reliance Ports And Terminals Limited CRISIL AAA 0.65 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 0.59 Haldhar Developers Private Limited ( backed by unconditional and irrevocable undertaking by Piramal ) ICRA LAA-(SO) 0.52 Notes: Term Deposit as provided above is towards margin for derivatives transactions Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 0.50 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.46 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.38 Ashirvad Microfinance Private Limited ( 85 subsidiary of Manappuram Finance Ltd ) CRISIL A Tata Power Company Ltd. CRISIL AA IOT Utkal Energy Services Ltd. CRISIL AAA 0.01 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Bank of India CRISIL A IDBI Bank Ltd ICRA A Power Finance Corporation Ltd. CRISIL AAA 1.59 Canara Bank CRISIL AAA 1.27 Syndicate Bank CARE AA Bank of India BRICKWORK BWR AA PNB Housing Finance Ltd. CARE AAA 0.75 State Bank of Travancore CRISIL AAA 0.56 Rural Electrification Corporation Ltd. CRISIL AAA 0.27 Public Sector Undertakings - Total Government Dated Securities 1.44% Central Government SOV 0.73 Government Dated Securities - Total 0.73 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A1+(SO) 0.98 Bahadur Chand Investments Private Limited ICRA A Corporate Debt/Financial Institutions - Total 1.91 Treasury Bills 91 Days Treasury Bill 01/09/2016 SOV 1.97 Treasury Bills - Total 1.97 TERM DEPOSITS HDFC Bank Ltd Term Deposits - Total 0.49 Collateral Borrowing & Lending obligation 3.22 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 3.43 years Kotak Medium Term Fund NAV as on August 31, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual) Treasury Bills Debentures and Bonds Commercial Paper (CP)/Certificate of Deposits (CD) CBLO & Term Deposits & Rev.Repo Government Dated Securities Investors understand that their principal will be at moderate risk RATING PROFILE IND AA+, AA, AA(SO), AA-, BWR AA-, LAA-(SO) A1+, A1+(SO), AAA, AAA(SO), IND AAA, SOV A+, IND A+, A, A- Net Current CBLO & Term Deposits & Rev.Repo Income over a medium term investment horizon Investment in debt, government securities & money market instruments with a portfolio weighted average maturity between 3-7 years * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 29 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

31 DEBT SCHEMES KOTAK BOND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To create a portfolio of debt and money market instruments of different maturities so as to spread the risk across a wide maturity horizon & different kinds of issuers in the debt market. However, there is no assurance that the objective of the scheme will be realized. November 25, 1999 Mr. Abhishek Bisen* Crisil Composite Bond Fund AAUM (` In Crores) AAUM as on August 31, 2016: ` 4, AUM (` In Crores) AUM as on August 31, 2016: ` 4, A) Deposit (discontinued for further subscriptions w.e.f. October 1, 2012) B) Plan A (Previously known as Regular Plan) C) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Quarterly (20th of Mar/Jun/Sep/Dec), Half Yearly (20th of Mar/Sept), Annual (12th of Mar) Ratios Standard Deviation: 4.64% Modified Duration: 7.14 yrs Portfolio Yield: 7.62% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Plan A `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: Nil. Exit Load: Nil. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.77% Direct: 0.97% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Bajaj Finance Limited CARE AAA 2.47 The Great Eastern Shipping Company Ltd. CARE AAA 1.24 East-North Interconnection Company Limited CRISIL AAA(SO) 0.81 Shriram Transport Finance Co Ltd. CRISIL AA HDFC Ltd. CRISIL AAA 0.03 Corporate Debt/Financial Institutions - Total 5.04 Public Sector Undertakings Canara Bank CRISIL AAA 6.30 Andhra Bank CRISIL AA Bank of India BRICKWORK BWR AA Bank of India CRISIL A Syndicate Bank CARE AA Indian Railway Finance Corporation Ltd. CRISIL AAA 0.15 Public Sector Undertakings - Total Government Dated Securities 7.73% Central Government SOV % Central Government SOV % Central Government SOV % State Government SOV % State Government SOV 2.42 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : years. Kotak Bond Plan A Fund NAV as on August 31, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual Dividend), ` (Plan A-Bonus Plan), ` (Kotak-Bond Deposit Deposit Dividend) SECTOR ALLOCATION (%) Treasury Bills Commercial Paper (CP)/Certi cate of Deposits (CD) Net Current CBLO & Term Deposits & Rev.Repo Debentures and Bonds Government Dated Securities Issuer/Instrument Industry/ % to Net Rating 8.19% State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV 0.47 Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions AXIS Bank Ltd. CRISIL A Corporate Debt/Financial Institutions - Total 0.80 Treasury Bills 91 Days Treasury Bill 01/09/2016 SOV 1.46 Treasury Bills - Total 1.46 Collateral Borrowing & Lending obligation 0.54 Net Current /(Liabilities) A+ AA+, AA-, BWR AA- Net Current CBLO & Term Deposits & Rev.Repo A1+, AAA, AAA(SO), SOV Income over long term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderate risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

32 DEBT SCHEMES KOTAK GILT INVESTMENT An Open - Ended Dedicated Gilt Unit INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To generate risk-free returns through investments in sovereign securities issued by the Central and /or State Government(s) and/ or reverse repos in such securities. However, there is no assurance that the objective of the scheme will be realized. Regular Plan - December 29, 1998; PF & Trust Plan - November 11, 2003 Mr. Abhishek Bisen* ISEC Composite AAUM (` In Crores) AAUM as on August31, 2016: ` AUM (` In Crores) AUM as on August 31, 2016: ` Plans- A) Regular Non Direct Plan, B) PF & Trust Non Direct Plan, C) Regular Direct Plan, D) PF & Trust Direct Plan/ Options: Dividend Payout, Dividend Reinvestment & Growth (applicable for all plans) Dividend Frequency Quarterly (20th of Mar/Jun/Sep/Dec) Ratios Standard Deviation: A) Regular Plan: 4.85%, B) PF & Trust Plan: 4.83%, Modified Duration:7.45yrs, Portfolio Yield: 7.42% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: (a) Regular Plan - Entry: Nil. (b) PF & Trust Plan - Entry: Nil. (applicable for all plans) Exit Load: (a) Regular Plan - Exit: Nil. (b) PF&Trust Plan - Exit: Nil. (applicable for all plans) Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.40% Direct: 0.39% Issuer/Instrument Industry/ % to Net Rating Government Dated Securities 7.61% Central Government SOV % Central Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV 0.52 Issuer/Instrument Industry/ % to Net Rating 7.86% State Government SOV % State Government SOV % State Government SOV 0.06 Government Dated Securities - Total Collateral Borrowing & Lending obligation 0.50 Net Current /(Liabilities) 2.45 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : years. Kotak Gilt Investment Fund NAV as on August 31, 2016: ` (Regular-Growth), ` (Regular-Growth-Direct), ` (Regular-Dividend), ` (Regular-Dividend-Direct), ` (PF & Trust-Growth), ` (PF & Trust-Growth Direct), ` (PF & Trust-Dividend) SECTOR ALLOCATION (%) Investors understand that their principal will be at moderate risk CBLO & Term Deposits & Rev.Repo SOV Net Current CBLO & Term Deposits & Rev.Repo Income over a long investment horizon Investments in sovereign securities issued by the Central and/or State Government(s) and / or reverse repos in such securities. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 31 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

33 DEBT SCHEMES KOTAK MONTHLY INCOME PLAN An Open Ended Income. Monthly Income is not assured & is subject to availability of distributable surplus Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium To enhance returns over a portfolio of Debt Instruments with a moderate exposure in Equity and Equity related Instruments. However, there is no assurance that the objective of the scheme will be realized. December 02, 2003 s Mr. Devender Singhal & Mr. Abhishek Bisen* CRISIL MIP Blended AAUM (` In Crores) AAUM as on August 31, 2016: ` AUM (` In Crores) AUM as on August 31, 2016: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every Month) Quarterly (20th of Mar/Jun/Sep/Dec) Ratios Standard Deviation: 6.15% Modified Duration: 3.86yrs Portfolio Yield: 7.99% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: (i) Dividend Reinvestment & Growth and Dividend Payout (Quarterly) - `5000 & above (ii) Dividend Payout (Monthly) - `50,000 & above Investment: `1000 & in multiples of `1 Ideal Investments Horizon - 1 year & above Entry Load: Nil. Exit Load: i) For redemption / switch out of upto 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil. ii) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%. iii) If units are redeemed or switched out on or after 1 year from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 2.40% Direct: 1.28% Issuer/Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) ITC Ltd. Consumer Non Durables 2.03 ICICI Bank Ltd. Banks 1.22 Tata Motors Ltd. Auto 1.04 Godfrey Phillips India Ltd. Consumer Non Durables 0.93 India Cements Ltd. Cement 0.82 Tata Motors Ltd - DVR Auto 0.82 HDFC Bank Ltd. Banks 0.80 Infosys Ltd. Software 0.72 Whirlpool of India Ltd. Consumer Durables 0.71 IFB Industries Ltd. Consumer Durables 0.64 Sun TV Limited. Media and Entertainment 0.62 DLF Limited Construction 0.61 Tata Communications Ltd Telecom - Services 0.61 Hero MotoCorp Ltd. Auto 0.57 Maruti Suzuki India Limited Auto 0.55 Dalmia Bharat Ltd Cement 0.51 Engineers India Ltd. Construction Project 0.51 Equitas Holdings Ltd Finance 0.48 MRF Limited Auto Ancillaries 0.48 Yes Bank Ltd Banks 0.48 Manpasand Beverages Ltd. Consumer Non Durables 0.46 Jagran Prakashan Limited Media and Entertainment 0.45 State Bank Of India Banks 0.45 Britannia Industries Ltd. Consumer Non Durables 0.40 Bombay Burmah Trading Corporation Ltd. Consumer Non Durables 0.39 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.36 Bharat Forge Ltd. Industrial Products 0.33 IndusInd Bank Ltd. Banks 0.28 Coromandel International Ltd. Fertilisers 0.27 Bharat Petroleum Corporation Ltd. Petroleum Products 0.25 The Ramco Cements Ltd Cement 0.22 Finolex Cables Ltd. Industrial Products 0.21 Federal Bank Ltd. Banks 0.19 Pennar Engineered Building Systems Limited Ferrous Metals 0.15 Axis Bank Ltd Banks 0.14 Notes: Term Deposit as provided above is towards margin for derivatives transactions Issuer/Instrument Industry/ % to Net Rating HDFC Ltd. Warrants Finance 0.08 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Public Sector Undertakings Bank of India CRISIL A Canara Bank CRISIL AAA 3.97 Andhra Bank CRISIL AA Rural Electrification Corporation Ltd. CRISIL AAA 0.08 Public Sector Undertakings - Total Government Dated Securities 7.59% Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV 4.01 Government Dated Securities - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.46 Collateral Borrowing & Lending obligation 7.19 Net Current /(Liabilities) 1.94 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments 5.63 years. Kotak Monthly Income Plan Fund NAV as on August 31, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Investors understand that their principal will be at moderate risk RATING PROFILE AA- Net Current A+ CBLO & Term Deposits & Rev.Repo AAA, SOV Income & capital growth over a long term horizon Investment in a portfolio of debt instruments with a moderate exposure in equity & equity related Instruments. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

34 DEBT SCHEMES KOTAK MULTI ASSET ALLOCATION FUND An Open - Ended Debt Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate income by investing predominantly in debt and money market securities, to generate growth by taking moderate exposure to equity and equity related instruments and provide diversification by investing in Gold ETFs. However, there is no assurance that the objective of the scheme will be realized. January 21, 2011 s Mr. Deepak Gupta & Mr. Abhishek Bisen* 75% CRISIL Short Term Bond Fund, 15% Nifty 50 and 10% Price of Gold. AAUM (` In Crores) AAUM as on August 31, 2016: ` AUM (` In Crores) AUM as on August 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth ) Dividend Frequency Monthly (12th of Every Month), Quarterly (20th of Mar/Jun/Sep/Dec), Annual (12th of March) Ratios Standard Deviation: 4.58%, Modified Duration: 3.04yrs, Portfolio Yield: 7.53% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `10000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: Nil. Exit Load: i) For exit within 1 year from the date of allotment of units: 1%. ii) For exit after 1 year from the date of allotment of units: Nil. iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.38% Direct: 0.42% Issuer/Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 1.27 Bharat Petroleum Corporation Ltd. Petroleum Products 0.88 Grasim Industries Ltd. Cement 0.83 IndusInd Bank Ltd. Banks 0.83 Infosys Ltd. Software 0.83 Asian Paints Ltd. Consumer Non Durables 0.82 ITC Ltd. Consumer Non Durables 0.81 Hero MotoCorp Ltd. Auto 0.80 Power Grid Corporation Of India Ltd Power 0.59 National Thermal Power Corporation Limited Power 0.50 Tata Steel Limited. Ferrous Metals 0.43 Bajaj Finance Limited Finance 0.42 Reliance Industries Ltd. Petroleum Products 0.42 Hindustan Unilever Ltd. Consumer Non Durables 0.39 Tata Motors Ltd. Auto 0.37 Zee Entertainment Enterprises Ltd Media and Entertainment 0.36 ACC Ltd. Cement 0.34 Petronet LNG Ltd. Gas 0.32 Yes Bank Ltd Banks 0.32 Axis Bank Ltd Banks 0.30 ICICI Bank Ltd. Banks 0.30 Eicher Motors Ltd Auto 0.28 Ultratech Cement Ltd. Cement 0.26 Ambuja Cements Ltd Cement 0.24 Bajaj Auto Ltd. Auto 0.24 Larsen And Toubro Ltd. Construction Project 0.24 Biocon Ltd. Pharmaceuticals 0.23 The Ramco Cements Ltd Cement 0.23 Hindalco Industries Ltd Non - Ferrous Metals 0.22 Mahindra & Mahindra Ltd. Auto 0.22 Bosch Limited Auto Ancillaries 0.20 JSW Steel Ltd. Ferrous Metals 0.20 RBL Bank Ltd Banks 0.20 GAIL (India) Ltd. Gas 0.18 Maruti Suzuki India Limited Auto 0.16 Dr Reddys Laboratories Ltd Pharmaceuticals 0.15 HDFC Ltd. Finance 0.15 Tata Consultancy Services Ltd. Software 0.14 Wipro Ltd. Software 0.14 Lupin Ltd. Pharmaceuticals 0.13 Mahanagar Gas Ltd Gas 0.12 Pidilite Industries Ltd. Chemicals 0.11 HCL Technologies Ltd. Software 0.08 Shriram Transport Finance Co Ltd. Finance 0.08 Notes: Term Deposit as provided above is towards margin for derivatives transactions Issuer/Instrument Industry/ % to Net Rating Ujjivan Financial Services Ltd Finance 0.08 Bharti Airtel Ltd. Telecom - Services 0.07 Britannia Industries Ltd. Consumer Non Durables 0.07 Equitas Holdings Ltd Finance 0.07 The Indian Hotels Company Ltd. Hotels 0.07 Tech Mahindra Ltd. Software 0.06 Vedanta Ltd. Minerals/Mining 0.05 Ashok Leyland Ltd. Auto 0.04 Divi s Laboratories Limited Pharmaceuticals 0.04 Marico Ltd. Consumer Non Durables 0.04 Aurobindo Pharma Ltd. Pharmaceuticals 0.03 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.02 Mahindra & Mahindra Financial Services Ltd. Finance 0.01 Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Mutual Fund - Kotak Gold ETF Mutual Fund Units 8.71 Mutual Fund Units - Total 8.71 Futures CNX NIFTY-SEP Futures (Market value represents Notional Value) - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Hindalco Industries Ltd. CRISIL AA Corporate Debt/Financial Institutions - Total 3.37 Government Dated Securities 8.45% State Government SOV % State Government SOV % State Government SOV % Central Government SOV 8.37 Government Dated Securities - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 1.01 Collateral Borrowing & Lending obligation 7.46 Net Current /(Liabilities) 4.09 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments: 4.20 years. Kotak Multi Asset Allocation Fund NAV as on August 31, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual) Government Dated Securities Net Current Debentures and Bonds Derivatives Mutual Fund Units Investors understand that their principal will be at moderate risk Mutual Fund Units AA Derivatives SOV Income & capital growth over a long term horizon Investment in a portfolio of debt instruments with a moderate exposure in equity & equity related instruments and provides diversification by investing in Gold ETFs * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 33 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

35 Details of exposure across all Debt Funds of Kotak Mahindra Mutual Fund as on 31 August 2016 Issuer Name %age of Exposure to Debt AUM AXIS Bank Ltd Aasan Developers and Constructions Private Limited ( Guaranteed by a Piramal Group Company ) 0.14 Adani Port and Special Economic Zone Limited 0.98 Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd ) 0.22 Adani Transmission Ltd 0.39 Aditya Birla Finance Ltd Airports Authority of India 0.05 Andhra Bank 0.63 Ashirvad Microfinance Private Limited ( 85% subsidiary of Manappuram Finance Ltd ) 0.16 Aspire Home Finance Corporation Ltd 0.14 Au Financiers (India) Limited 0.25 Bahadur Chand Investments Private Limited 0.24 Bajaj Capital Ventures Pvt. Ltd. ( Secured by Equity shares of Bajaj Corp. Ltd ) 0.15 Bajaj Finance Limited 1.26 Bank of India 0.45 Bank of Maharashtra 0.05 Bhanu Vyapaar Private Limited ( Secured by Equity shares of Emami Ltd ) 0.09 Bharat Aluminum Co. Ltd Bharti enterprises (Holding) Pvt. Ltd Birla Corporation Ltd CBLO/REVERSE REPO 1.24 Camden Industries Ltd. ( backed by unconditional and irrevocable undertaking of Axis Capital ) 0.44 Canara Bank 0.73 Central Government Cholamandalam Investment and Finance Company Ltd 0.01 Continental Drug Company P Ltd ( Secured by Equity shares of Zee Entertainment Enterprises Ltd ) 0.41 Corporation Bank 0.15 DLF Emporio Ltd 0.20 Dalmia Bharat Ltd 0.38 Dewan Housing Finance Corporation Ltd ECL Finance Limited 1.40 East-North Interconnection Company Limited 0.14 Edelweiss Agri Value Chain Limited (Unconditional and irrevocable guarantee from Edelweiss Financial Services Limited ) 0.56 Edelweiss Commodities Services Ltd Edelweiss Financial Services Limited 0.16 Edelweiss Housing Finanance Limited 0.38 Edisons Untility Works Pvt.Ltd. ( Secured by Equity shares of Zee Entertainment Enterprises Ltd ) 0.21 Emami Enclave Markets Pvt Ltd. ( Secured by Equity shares of Emami Ltd ) 0.09 Emami Ltd Equitas Micro Finance Ltd Essel Lucknow Raibareli Toll Roads Limited 0.10 Essel Mining & Industries Ltd Export-Import Bank of India Fullerton India Credit Co. Ltd Grand View Estate Pvt Ltd ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.37 Grasim Industries Ltd Gruh Finance Ltd 1.13 HDB Financial Services Ltd HDFC Bank Ltd HDFC Ltd HPCL Mittal Energy Ltd HPCL Mittal Pipelines Ltd Haldhar Developers Private Limited ( backed by unconditional and irrevocable undertaking by Piramal ) 0.07 Hero Realty Ltd ( Guaranteed by a Hero Group company ) 0.20 Point Properties Pvt LTD ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.17 Hindalco Industries Ltd Hinduja Leyland Finance Ltd Hindustan Zinc Ltd 0.48 ICICI Bank Ltd ICICI Home Finance Company Limited 0.46 IDBI Bank Ltd 0.19 IDFC Bank Limited 0.04 IL & FS Transportation Networks Limited ( Secured by Equity shares of IL & FS Ltd ) 0.13 IOT Utkal Energy Services Ltd India Infoline Finance Limited 1.69 India Infoline Housing Finance Ltd Indiabulls Housing Finance Limited 1.19 Indian Oil Corporation Ltd Indian Railway Finance Corporation Ltd Indostar Capital Finance Private Limited 0.25 IndusInd Bank Ltd Innovador Realtors Pvt Ltd ( backed by unconditional and irrevocable Issuer Name %age of Exposure to Debt AUM undertaking by Piramal ) 0.45 Inox Air Products Ltd Intime Properties Ltd Janalakshami Financial Services Ltd Jyothy Laboratories Limited 0.07 Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) 0.73 Kotak Mahindra Bank Ltd Kotak Mahindra Investments Ltd Kotak Mahindra Prime Ltd L & T Finance Limited 0.67 L & T Infrastructure Development Project Ltd LIC Housing Finance Ltd Larsen and Toubro Ltd MA MAULTI TRADE PVT LTD ( Secured by Equity shares of Bajaj Corp. Ltd ) 0.15 Mahindra & Mahindra Financial Services Ltd Manappuram Finance Ltd 1.00 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) 0.33 Muthoot Finance Ltd 1.46 Muthoot Fincorp Ltd Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) 1.74 National Bank for Agriculture and Rural Developmen 3.02 National Housing Bank 0.25 ONGC Manglore Petrochemicals Ltd Oriental Bank of Commerce 0.05 PNB Housing Finance Ltd Peninsula Land Limited 0.20 Phoenix ARC Pvt Ltd 0.10 Piramal Enterprises Limited 1.93 Power Finance Corporation Ltd Power Grid Corporation of India Ltd Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) 0.04 Prestige Estates Projects Limited 0.40 Pune Solapur Expressways Pvt. Ltd. ( toll road project of Tata Realty & Infrastructure Ltd, 100% subsidiary of Tata Sons ) 0.17 Punjab National Bank 0.03 Raymond Ltd Reliance Jio Infocomm Limited 4.64 Reliance Ports And Terminals Limited 0.04 Reliance Utilities And Power Private Limited 0.14 Rural Electrification Corporation Ltd SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) 0.18 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.19 Sadbhav Engineering Ltd Sahyadri Agencies Ltd ( Secured by Equity shares of Jyothy Laboratories Ltd ) 0.21 Shapoorji Pallonji Energy Gujarat Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.12 Shivprasad Realty Pvt Ltd ( backed by unconditional and irrevocable undertaking by Axis Capital ) 0.09 Shriram Transport Finance Co Ltd Small Industries Development Bank Of India Sneha Abasan Pvt Ltd ( Secured by Equity shares of Emami Ltd ) 0.07 Sneha Enclave Pvt Ltd ( Secured by Equity shares of Emami Ltd ) 0.04 State Bank Of India State Bank of Travancore 0.09 State Government 6.46 Steel Authority of India Ltd Sterlite Industries (India) Ltd 0.34 Sundaram BNP Paribas Home Finance Ltd 0.09 Sundaram Finance Ltd Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) 1.96 Syndicate Bank 0.18 Tata Capital Financial Services Limited 0.29 Tata Capital Housing Finance Ltd; 1.27 Tata Motors Finance Ltd 0.44 Tata Motors Ltd Tata Power Company Ltd Tata Sons Ltd Tata Steel Limited 0.01 The Great Eastern Shipping Company Ltd Ultratech Cement Ltd Vedanta Ltd Vijaya Bank 0.03 TOTAL 100 Industry / Sector %age of Exposure to Debt AUM BANK 4.51 CASH(CBLO/REVERSE REPO) 1.24 CORPORATES FINANCIAL SERVICES GOI/TBILLS NBFC REAL ESTATE 0.6 TOTAL Includes Hybrid schemes - debt scheme schemes having equity exposure 34

36 FUND OF FUNDS KOTAK ASSET ALLOCATOR FUND An Open Ended Fund of Funds (Earlier known as Kotak Equity FOF ) Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate long-term capital appreciation from a portfolio created by investing in specified open-ended equity, and debt schemes of Kotak Mahindra Mutual Fund. However, there is no assurance that the investment objective of the will be realized. August 9, 2004 Mr. Deepak Gupta* Crisil Balanced Fund AAUM (` In Crores) AAUM as on August 31, 2016: `28.41 AUM (` In Crores) AUM as on August 31, 2016: ` A) Regular Plan B) Regular Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) 1% if exit before 1 year from date of allotment. II) Nil if exit after 1 year from the date of allotment. Exit Load shall be applicable incase of switch from Regular Plan (where broker code is mentioned) to Direct Plan Exit Load shall not be applicable: Incase of switch from Regular Plan (where no broker code is mentioned) to Direct Plan In case of switch from Direct Plan to Regular Plan. III) Any exit load charged (net off Service Tax, if any) shall be credited back to the. Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.85% Direct:1.29% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Kotak Treasury Advantage Fund Direct Growth Debt Kotak Select Focus Fund Direct Growth Equity Kotak Mahindra Bond Plan Debt Kotak Liquid Plan A Debt 9.95 Mutual Fund Units - Total Net Current /(Liabilities) Kotak Asset Allocator Fund NAV as on August 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), `66.571(Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Debt Equity Others Investors understand that their principal will be at moderate risk Long term capital growth Investment in open-ended diversified equity schemes and debt schemes of Kotak Mahindra Mutual Fund * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 35 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

37 FUND OF FUNDS KOTAK US EQUITY FUND (formerly known as PineBridge India US Equity Fund) An Open Ended Fund of Funds Investing Overseas INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The primary investment objective of the scheme is to provide long term capital appreciation by investing in units of a fund that invests predominantly in equity and equity related securities of companies having assets, products or operations in the United States. However, there is no assurance that the investment objective of the will be realized. December 20, 2013 Mr. Deepak Gupta* Standard & Poor's 500 Total Return Net Index in USD is the benchmark of the underlying scheme. The same converted into INR using RBI reference rate will be the benchmark for the scheme. AAUM (` In Crores) AAUM as on August 31, 2016: ` 5.21 AUM (` In Crores) AUM as on August 31, 2016: ` 5.22 A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular:1.40% Direct: 0.62% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Pinebridge US Large Cap Research Enhance Fund Overseas Mutual Fund Mutual Fund Units - Total Net Current /(Liabilities) 3.16 Kotak US Equity Fund NAV as on August 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), `12.36 (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) 3.16 Overseas Mutual Fund Others Investors understand that their principal will be at high risk Long term capital growth Long term capital appreciation by investing in Units of PineBridge US Large Cap Research Enhanced Fund which in turn invests in equity and equity related securities of companies having assets, products or operations in the United States. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no

38 FUND OF FUNDS KOTAK GLOBAL EMERGING MARKET FUND An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation by investing in an overseas mutual fund scheme that invest in a diversified portfolio of securities as prescribed by SEBI from time to time in global emerging markets. However, there is no assurance that the objective of the scheme will be realized. September 26, 2007 s Mr. Deepak Gupta (Dedicated fund manager for s overseas investment) & Mr.Abhishek Bisen* MSCI Emerging Market AAUM (` In Crores) AAUM as on August 31, 2016: `30.83 AUM (` In Crores) AUM as on August 31, 2016: `30.87 A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For exit within 1 year from the date of allotment of units: 1%. ii) For exit after 1 year from the date of allotment of units: Nil iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.81% Direct: 0.65% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units MGF Asian Small Equity Fund Class I Overseas Mutual Fund ishares MSCI Emerging Markets ETF Overseas Mutual Fund Mutual Fund Units - Total Net Current /(Liabilities) 4.74 Kotak Global Emerging Market Fund NAV as on August 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), `14.17 (Direct Growth Option) SECTOR ALLOCATION (%) 4.74 Others Overseas Mutual Fund Investors understand that their principal will be at high risk Long term capital growth Investment in overseas mutual fund schemes that invest in a diversified portfolio of securities in global emerging markets * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 37 * For experience, please refer page For scheme performance, please refer page no

39 FUND OF FUNDS KOTAK WORLD GOLD FUND (formerly known as PineBridge World Gold Fund ) An Open Ended Fund of Funds INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The primary investment objective of the is to provide long term capital appreciation by investing predominantly in units of Falcon Gold Equity Fund. The may, at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund schemes. The may also invest a certain portion of its corpus in debt and money market securities and/or units of debt/liquid schemes of Mutual Funds, in order to meet liquidity requirements from time to time. However, there is no assurance that the investment objective of the will be realized. June 6, 2008 Mr. Deepak Gupta* Financial Times Gold Mines Total Price Index, in USD is the benchmark of Falcon Gold Equity Fund. The above translated to INR using the RBI Reference Rate will be the benchmark of Kotak World Gold Fund. AAUM (` In Crores) AAUM as on August 31, 2016: ` AUM (` In Crores) AUM as on August 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 for purchase and for `0.01 for switches Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off ServiceTax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular:1.90% Direct: 1.07% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Falcon Gold Equity ASIA Overseas Mutual Fund Mutual Fund Units - Total Collateral Borrowing & Lending obligation 2.72 Net Current /(Liabilities) Kotak World Gold Fund NAV as on August 31, 2016: `9.064 (Dividend Option), `9.32 (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Overseas Mutual Fund CBLO & Term Deposits & Rev.Repo Others Investors understand that their principal will be at high risk Long term capital growth Long term capital appreciation by investing in units of Falcon Gold Equity Fund which in turn invests in international securities of gold production, processing and marketing companies * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no

40 ETF SCHEMES KOTAK GOLD ETF An Open Ended Gold Exchange Traded Fund The investment objective of Kotak Gold ETF is to generate returns that are in line with the returns on investment in physical gold, subject to tracking error. July 27, 2007 Mr. Abhishek Bisen* Physical Gold AAUM (`In Crores) AAUM as on August 31, 2016: ` AUM (`In Crores) AUM as on August 31, 2016: ` A) Regular Plan B) Direct Plan Through Exchange:10 Units, Through AMC: Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Regular: 1.00% Direct: NA Issuer / Instrument Industry/ % to Net Rating Gold Gold Fineness99.5 Gold Listed/Awaiting Listing on Stock Exchange - Total Kotak Gold ETF NAV as on August 31, 2016: ` Tracking Error: 0.06% NAV Issuer / Instrument Industry/ % to Net Rating Net Current /(Liabilities) Sector Allocation (%) Gold Others Investors understand that their principal will be at moderate risk Returns in line with physical gold over medium to long term, subject to tracking error Investment in physical gold * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 39 * For experience, please refer page For scheme performance, please refer page no 44-53

41 ETF SCHEMES KOTAK NIFTY ETF An Open Ended Exchange Traded Fund [Eligible scheme under Rajiv Gandhi Equity Savings (RGESS)] The investment objective of the scheme is to provide returns before expenses that closely correspond to the total returns of the CNX Nifty subject to tracking errors. February 2, 2010 Mr. Deepak Gupta* Nifty 50 AAUM (`In Crores) AAUM as on August 31, 2016: ` AUM (`In Crores) AUM as on August 31, 2016: ` A) Regular Plan B) Direct Plan Ratios Portfolio Turnover: 21.08% Tracking Error: 0.08% Through Exchange:1 Unit, Through AMC: 5000 Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Regular:0.10% Direct: NA Issuer / Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 8.01 HDFC Ltd. Finance 6.88 ITC Ltd. Consumer Non Durables 6.81 Infosys Ltd. Software 6.40 Reliance Industries Ltd. Petroleum Products 5.42 ICICI Bank Ltd. Banks 4.64 Tata Consultancy Services Ltd. Software 4.13 Larsen And Toubro Ltd. Construction Project 3.84 Tata Motors Ltd. Auto 3.22 Axis Bank Ltd Banks 3.09 Kotak Mahindra Bank Ltd. Banks 2.89 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 2.60 State Bank Of India Banks 2.43 Maruti Suzuki India Limited Auto 2.08 Mahindra & Mahindra Ltd. Auto 2.07 Hindustan Unilever Ltd. Consumer Non Durables 2.03 IndusInd Bank Ltd. Banks 1.82 Asian Paints Ltd. Consumer Non Durables 1.62 Hero MotoCorp Ltd. Auto 1.40 Yes Bank Ltd Banks 1.39 HCL Technologies Ltd. Software 1.36 Bharti Airtel Ltd. Telecom - Services 1.35 Oil & Natural Gas Corporation Ltd. Oil 1.31 Coal India Ltd. Minerals/Mining 1.30 Ultratech Cement Ltd. Cement 1.30 Bajaj Auto Ltd. Auto 1.25 Power Grid Corporation Of India Ltd Power 1.25 National Thermal Power NAV Issuer / Instrument Industry/ % to Net Rating Corporation Limited Power 1.22 Dr Reddys Laboratories Ltd Pharmaceuticals 1.21 Lupin Ltd. Pharmaceuticals 1.10 Wipro Ltd. Software 0.98 Bharat Petroleum Corporation Ltd. Petroleum Products 0.97 Eicher Motors Ltd Auto 0.94 Grasim Industries Ltd. Cement 0.93 Zee Entertainment Enterprises Ltd Media and Entertainment 0.91 Cipla Ltd. Pharmaceuticals 0.90 Tech Mahindra Ltd. Software 0.90 Tata Steel Limited. Ferrous Metals 0.77 Adani Port and Special Economic Zone Limited Transportation 0.72 Bosch Limited Auto Ancillaries 0.68 Ambuja Cements Ltd Cement 0.67 Aurobindo Pharma Ltd. Pharmaceuticals 0.66 Hindalco Industries Ltd Non - Ferrous Metals 0.63 Bharti Infratel Ltd. Telecom - Equipment & Accessories 0.58 GAIL (India) Ltd. Gas 0.56 Tata Motors Ltd - DVR Auto 0.54 ACC Ltd. Cement 0.50 Bank Of Baroda Banks 0.48 Tata Power Co. Ltd. Power 0.44 Bharat Heavy Electricals Ltd. Industrial Capital Goods 0.39 Idea Cellular Ltd. Telecom - Services 0.36 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.07 Kotak Nifty ETF NAV as on August 31, 2016 : ` Sector Allocation (%) Banks Software Consumer Non Durables Auto Pharmaceuticals Finance Petroleum Products Construction Project Cement Power Others Investors understand that their principal will be at moderate risk Long term capital growth Investment in stocks comprising the underlying index and endeavours to track the benchmark index * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

42 ETF SCHEMES KOTAK SENSEX ETF An Open Ended Exchange Traded Fund [Eligible scheme under Rajiv Gandhi Equity Savings (RGESS)] The investment objective of the scheme is to provide returns before expenses that closely correspond to the total returns of the BSE SENSEX subject to tracking errors. June 6, 2008 Mr. Deepak Gupta* S&P BSE SENSEX AAUM (`In Crores) AAUM as on August 31, 2016: `11.36 AUM (`In Crores) AUM as on August 31, 2016: `11.45 A) Regular Plan B) Direct Plan Ratios Portfolio Turnover: 22.78% Tracking Error: 0.12% Through Exchange:1 Unit, Through AMC: Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Regular: 0.25% Direct: NA Issuer / Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 9.81 HDFC Ltd. Finance 8.56 ITC Ltd. Consumer Non Durables 8.46 Infosys Ltd. Software 7.98 Reliance Industries Ltd. Petroleum Products 6.74 ICICI Bank Ltd. Banks 5.77 Tata Consultancy Services Ltd. Software 4.96 Larsen And Toubro Ltd. Construction Project 4.78 Tata Motors Ltd. Auto 3.94 Axis Bank Ltd Banks 3.88 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 3.23 State Bank Of India Banks 3.09 Maruti Suzuki India Limited Auto 2.58 Mahindra & Mahindra Ltd. Auto 2.55 Hindustan Unilever Ltd. Consumer Non Durables 2.52 Asian Paints Ltd. Consumer Non Durables 2.01 Bharti Airtel Ltd. Telecom - Services 1.79 Hero MotoCorp Ltd. Auto 1.66 Oil & Natural Gas Kotak Sensex ETF NAV as on August 31, 2016 : ` NAV Issuer / Instrument Industry/ % to Net Rating Corporation Ltd. Oil 1.64 Coal India Ltd. Minerals/Mining 1.62 Bajaj Auto Ltd. Auto 1.56 Power Grid Corporation Of India Ltd Power 1.56 Dr Reddys Laboratories Ltd Pharmaceuticals 1.52 Lupin Ltd. Pharmaceuticals 1.36 National Thermal Power Corporation Limited Power 1.26 Wipro Ltd. Software 1.21 Cipla Ltd. Pharmaceuticals 1.12 Tata Steel Limited. Ferrous Metals 0.96 Adani Port and Special Economic Zone Limited Transportation 0.92 GAIL (India) Ltd. Gas 0.69 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.27 Sector Allocation (%) Banks Software Auto Consumer Non Durables Pharmaceuticals Finance Petroleum Products Construction Project Telecom - Services Others Power Investors understand that their principal will be at moderate risk Long term capital growth Investment in stocks comprising the underlying index and endeavours to track the benchmark index * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 41 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58